SEOUL, South Korea--(BUSINESS WIRE)--SEOUL, South Korea-- Betalabs (CEO Kim Ho-gwang), the operator of Cy Club, applied for a 'provisional injunction, such as prohibition of obstruction of business, such as issuance of cryptocurrency,' against three companies including Cyworld Z on 4th. The industry and investors are focusing on the background of Law firm Kim & Chang’s participation as a legal representative for Betalabs.
The application for injunction submitted by Betalabs to the Seoul Central District Court is a request for recognition of Betalabs' monopoly status in the overall operation of Cyworld, including coin issuance, rebranding, logo use, platform linkage and content resource use. In addition, it also contains a request to suspend the blockchain projects that Cyworld Z is promoting with other companies such as Conun Korea because they do not have legal justification.
Recently, Cyworld Z fired CEO Hogwang Kim and unilaterally notified Betalabs to terminate the contract. In response, Betalabs refutes that Cyworld Z is violating the law by presenting a memorandum of understanding on March 16 of last year and an agreement on issuance of coins on April 14. Betalabs claims that the exclusive status of Betalabs is specified in the two documents, and that there is no legal basis for notification of contract termination. If the court accepts Betalabs' application, the industry will believe that Cyworld Z may be subject to significant restrictions on business conduct.
In the midst of this, with 'Kim & Chang' standing in court on behalf of Betalabs, there is a story among industry insiders saying, ‘Kim & Chang’ would have appointed the lawsuit because there is a legal basis and victory is expected. 'Kim & Chang' side said, "We have to wait for the court's decision on the outcome of the injunction application," but also said, "After taking sufficient time and carefully examining related materials, we have decided to take on the lawsuit." It shows that Kim & Chang acknowledged Betalabs’ legal justification.
With many users and investors waiting for Cyworld to open, the industry's attention is focused on whether the court's decision will open the way to business normalization.