A South Korean digital asset treasury firm has come under scrutiny after reports revealed it transferred its entire Bitcoin holdings from domestic secure wallets to several overseas cryptocurrency exchanges, including Binance and Bybit. The move was detailed by the South Korean newspaper Maeil Kyungjae and raised questions about the company’s intentions amid its ongoing financial struggles.
BitMax, which markets itself as a firm focused on Bitcoin treasuries, reassured stakeholders that it has not sold any of its Bitcoin. CEO Hong Sang-hyeok emphasized in a public statement that the company is currently managing its assets in a distributed manner across various secure accounts to both improve security and operational efficiency.
This situation comes amid a challenging financial climate for BitMax, which reported a staggering net loss of $52 million in the third quarter of 2025. The firm has had to make significant cutbacks, including a 66% reduction in its research and development budget for its augmented reality operations, as part of a broader trend affecting companies that sought to replicate the success of Bitcoin treasury strategies.
As a backdrop, the cryptocurrency landscape in South Korea has become increasingly complex due to regulatory restrictions. Current regulations prevent companies from opening corporate wallets on domestic crypto exchanges, although there are indications that the government might consider changes to this policy. This limitation has pushed firms like BitMax to rely on offshore exchanges, which are perceived to offer greater security.
BitMax was initially established in 2010 and evolved from a metaverse and AR company to a digital asset treasury in 2025. The firm had accumulated approximately 550 Bitcoin, worth an estimated $39 million, through undisclosed sources prior to the transfer. These holdings were previously managed by Korea Digital Asset, a leading custodian jointly operated by Kookmin Bank, the largest commercial bank in South Korea.
Reports suggest that BitMax’s recent actions are part of a larger reaction to the severe market downturn that has seen Bitcoin’s value plummet by over 40% since October of last year. In light of such challenges, the Korea Exchange suspended trading of BitMax’s shares, prompting concerns that the company could be at risk of delisting. In an effort to rebuild its credibility, BitMax commissioned an external audit, claiming to demonstrate the reliability of its financial status.
As BitMax navigates this precarious situation, it faces mounting pressure to clarify its cryptocurrency management strategy. The transfers to overseas exchanges, characterized by a blockchain expert as potentially strategic for minimizing losses during sales, have intensified scrutiny on the company’s future direction and stability amidst a highly volatile market.
