Viva Republica representatives borrowed $54.75 million from FTX, which may affect the company's listing process

ChainCatcher news, Lee Seung-kyun, a representative of the P2P transfer service provider Viva Republica, confirmed that he borrowed approximately 73 billion Korean won from the now-bankrupt FTX exchange's subsidiary, using the company's stock he holds as collateral. Currently, Lee Seung-kyun has extended the loan through other financial institutions in South Korea. If the Korean exchange deems that the amount of stock collateral provided by Lee Seung-kyun is excessive, it may adversely affect the company's listing process.

According to documents related to the bankruptcy proceedings of FTX Trading Ltd. in the U.S. Bankruptcy Court for Delaware, Lee Seung-kyun signed a loan agreement with FTX Trading's subsidiary Maclaurin Investments on November 4, 2021, for a loan amount of $54.75 million (approximately 73.09 billion Korean won). The documents also indicate that the "recoverability of this loan is uncertain." In addition to providing the loan, FTX Trading also made an equity investment of $71.3 million (approximately 95.2 billion Korean won) in Viva Republica.

Industry insiders believe that this move may not pose an obstacle to Viva Republica's listing, but the judgment of the Korean exchange will still impact the listing process. Viva Republica plans to go public as early as next year, with market valuation expectations ranging from 9 to 10 trillion Korean won.