BitMax denies Bitcoin sale as financial woes mount for South Korean digital asset treasury

BitMax refutes claims of selling Bitcoin amid financial struggles in South Korea's digital asset sector, as it faces scrutiny over large crypto transfers.

As Bitcoin continues to dominate the digital asset landscape, curious developments are unfolding within South Korea’s cryptocurrency sector. BitMax, a firm promoted as a digital asset treasury (DAT), is currently navigating turbulent financial waters, leading to speculation regarding its Bitcoin holdings. Recently, reports surfaced that BitMax transferred massive amounts of Bitcoin from its secure cold wallets to overseas exchanges like Bybit and Binance . Could this indicate a potential sell-off? What Led to BitMax's Controversial Bitcoin Moves? According to an article published by South Korean newspaper Maeil Kyungjae, BitMax has sent all its Bitcoin holdings, with increments ranging between $3.5 million and $7 million, to addresses on Bybit, Binance, and other non-Korean platforms. This revelation raised eyebrows about the company's financial health and prompted discussions about the implications of such a move. In response to these concerns, BitMax vehemently denied any intention to sell its Bitcoin. “We have not sold a single Bitcoin," asserted CEO Hong Sang-hyeok in a statement featured on the company's website. The firm claims it is instead holding its coins in a distributed manner across secure accounts to enhance security and improve operational efficiency. Are Overseas Exchanges a Safer Bet? BitMax's decision to withdraw Bitcoin from a domestic custodian, opting instead to store it on foreign exchanges, raises significant questions about the safety and reliability of South Korean crypto custodians. The company stated that overseas exchanges offer better security than domestic wallet providers, a concerning claim given the ongoing scrutiny over South Korea's regulatory framework. As financial woes mount, BitMax is not isolated in its struggles. The company reported significant net losses amounting to $52 million for the third quarter of 2025, prompting a slash in its research and development budget for its augmented reality sector by 66%. Market observers a