South Korean cryptocurrency exchange Bithumb is targeting an initial public offering (IPO) in 2028. As an initial step, the company plans to submit its preliminary registration review in 2027. To facilitate this plan, Bithumb is spinning off its Bithumb Asset entity to clearly define areas of responsibility and reduce conflicts of interest before going public.
Administrative preparations are being accelerated. Bithumb is enhancing its internal company controls and starting the migration from domestic accounting standards to K-IFRS, the international reporting standard mandatory for public companies in South Korea.
This restructuring is not just a bureaucratic routine, but an effort to restore its reputation following an operational incident last February.
The Fallout of the 620,000 Fake BTC Blunder
In February 2026, Bithumb made a fatal error during a promotional program. The company initially intended to distribute cash rewards of 620,000 won to customers, but the system instead credited 620,000 fake BTC to users’ wallets.
Before the exchange froze the related accounts, customers had already sold 1,788 BTC on the open market. Bithumb recovered 99.7% of the total erroneously credited funds, but the incident has had long-lasting consequences.
The impact of this failure reached parliament. Bithumb CEO Lee Jae-won had to face a hearing on February 11 and admitted that the verification process between the promotional distribution figures and the availability of real funds had failed.
The move toward transparency is also shadowed by the track record of its affiliates. Two listed companies associated with Bithumb, namely Vidente and Bucket Studio, have had their stock trading suspended since March 2023 due to financial audit issues.
A Changing Competitive Landscape
Bithumb’s decision to set an IPO target is also driven by a drastically changing competitive landscape. Competitors are starting to consolidate their strength through acquisitions. Mirae Asset Consulting took over Korbit on July 23, while Dunamu, the operator of Upbit, is pursuing a stock swap to become a full subsidiary of Naver Financial.
Bithumb has crucial capital to survive. They are one of five crypto exchanges in South Korea authorized to facilitate fiat trading. This license is operated using a real-name bank account system through a partnership with KB Kookmin Bank.
The transition to K-IFRS and the establishment of a new structure serve as a proving ground for Bithumb. Given the track record of their promotional systems, this restructuring needs to reach their operational foundations before they can confidently seek public funding.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
