Charles Lee, a well-known Singaporean of Korean descent, is reportedly facing major challenges in his Web3 business empire, and it remains unclear whether this is his Waterloo in the industry. Charles Lee is urgently seeking to sell his cryptocurrency derivatives exchange, Bit.com, and the tightening financial regulations in South Korea may complicate the process.
Bit.com has garnered attention since its inception, as the platform, launched by the Romani Foundation, offers cryptocurrency derivative trading services. The exchange has had multiple discussions and negotiations with South Korean investors, but after several failed agreements, it faced collective resistance from major South Korean conglomerates. In early 2024, Charles Lee privately expressed his intention to sell Bit.com and began negotiating with potential buyers. With the rise of Bitcoin and the enthusiasm in the market, negotiations took place multiple times, and the sale agreement price increased from $100 million to $130 million, as seen at Token2049 Dubai. However, this offer faced opposition from various large investment institutions, including those from South Korea, and the sale plan was forced to be terminated.
Despite having the backing of the Romani Foundation and South Korean conglomerates, Bit.com, which was initially dubbed as a platform “born with a golden spoon” in the industry, is experiencing a lack of momentum in its development. According to CoinMarketCap, it is absent from the top ten in the competitive field of derivative trading platforms, and its Twitter account has only 307,000 followers. The user base of Bit.com appears modest in the face of a trillion-dollar market, and the platform’s potential for development is limited. The fundamental issue is that Bit.com is facing critical problems with trading volume and liquidity. Liquidity and market depth are crucial for the smooth operation of a cryptocurrency derivatives exchange. While large exchanges enjoy higher liquidity, emerging platforms often attract liquidity providers through market-making programs and incentives. Despite Charles Lee’s support, the liquidity of Bit.com has not improved. These challenges raise doubts about the company’s financial situation and its future operations and development.
Furthermore, the urgency of Charles Lee to sell Bit.com may stem from deeper financial issues. It is understood that Charles Lee previously invested a substantial amount of $54 million in the cryptocurrency trading company VN.com. However, VN.com is currently facing delays in fund disbursement, which means that the promises made to VN.com founder, Hemingway Lee, cannot be fulfilled on time. This indirectly confirms that Charles Lee’s cash flow is being tested.
Notably, Charles Lee’s mysterious identity has always been a subject of interest. The Singaporean of Korean descent has never revealed his true face, and the most widely circulated image of him is being taken away by the police in South Korea. There have also been reports of him trespassing in the South Korean National Assembly. As the founder of MissWeb3, Charles Lee continuously supplements the event with funds. MissWeb3 aims to create a TikTok in the Web3 field, empowering female participants. The reward of 1,499 BTC has attracted numerous participants, including PhD students from globally renowned institutions such as MIT. Currently, the event is being launched enthusiastically in Singapore, Dubai, and South Korea. Charles Lee and his team spared no expense to make a splash at Token2049 Dubai. The heavily subscribed event has faced challenges, with the system crashing multiple times due to the overwhelming number of registrations. Charles Lee has invested significant funds in the operation, management, and promotion of MissWeb3, attempting to create a globally sensational Web3 event. The high-profile promotion, mysterious funding volume, and enigmatic background have left many puzzles for the public. The 1,499 BTC prize and the provision of private jets, hotel accommodations, and tickets for 100 MissWeb3 participants to attend Token2049 have caused a stir in public opinion. The substantial prize pool and operating costs may be the main sources of financial pressure for Charles Lee, the Singaporean of Korean descent, and it is not surprising that Bit.com is up for sale.
More critically, there are rumors that Bit.com is facing compliance issues and may be subjected to stringent investigations by South Korean regulatory agencies. With South Korea tightening its regulations on Web3, Bit.com is faced with the decision to remove South Korean users from its platform. Kim Moonsun, the head of Bit.com in South Korea, may be invited by regulatory agencies for questioning. Although the details of the potential investigation have not been disclosed, this adds more uncertainty to Bit.com and Charles Lee’s Web3 journey.
