Toss says loan for operator's CEO not from FTX, won't impact IPO

Toss said that a loan taken out by the founder of Viva Republica, the internet-only bank's operator, is unrelated to now-defunct FTX Trading and won't affect an anticipated IPO.

Lee Seung-gun, founder and CEO of Viva Republica, which operates Toss [VIVA REPUBLICA]

Toss, an online payment service operated by Viva Republica, denied speculation that a loan its founder received from an affiliate of now-defunct FTX Trading may impact the firm’s anticipated initial public offering (IPO).

The company said on Friday that the loan, which reportedly amounted to $54.75 million, was not directly related to the failed cryptocurrency exchange, and has already been fully repaid.

This came after a media report earlier in the day said that Lee Seung-gun, the founder and CEO of Viva Republica, was granted a personal loan collateralized by his stake in the company from Maclaurin Investments, an affiliate of FTX Trading, citing a court document filed by the defunct exchange.

Speculation suggested that the loan may affect Viva Republica’s listing, which is expected to come as early as next year. As of June 30, Lee was the largest shareholder of Viva Republica with a 15.5 percent stake, according to the company's regulatory filing.

“The loan provided to the Toss founder was issued by Maclaurin, an investment firm, and not FTX,” said Viva Republica in a statement.

“As the loan has been fully repaid, it is not relevant to the IPO proceedings in the future and cannot have an impact on the process.”

The firm warned that “we are considering serious legal action against any kinds of activities that aim to defame not only an individual but also the company, and undermines our trust with customers.”

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]