Back in Oct 2018, it was reported that Bithumb South Korea’s largest crypto exchange was acquired by Singapore based BK Global Consortium for over $300 Million deal – however, the acquisition is on a verge of collapse.
As the exchange was set to sell 50 percent, plus one share to BK Global Consortium, the bidder has apparently failed to pay the full amount to BTC Korea Holdings, the parent company of Bithumb crypto exchange. However, BK Global had initially made the payment of $100 million as a down payment but the full payment of 400 billion won (i.e $354 million) was supposed to complete by February this year. Neverthless, the deadline was extended twice, on a condition that the shares of 50 percent were extended to 70 percent. Notably, the last deadline for the full payment was on Sept 30 whereas the first extended deadline was in April.
In a wake of expiry of the deadline, the local news portal “The Korea Herald” reported that the down payment of $100 million will now be a subject of a legal battle. With that being said, the deal of acquisition appears to be going nowhere as the consortium led by plastic surgeon Dr. Kim Byung-gn haven’t made full payment until now.
During the time of the acquisition, it was reported that the acquisition might lead BK Consortium to create its own cryptocurrency, the information of which hasn’t materialized either. However, as far the deal with BTC Holding is concerned, it appeared to be just signed on papers and it is being speculated that the move was just as a means of financing the firm by purchasing the shares of Bithumb. Concerning the deal, CCN reported a statement of the Bithumb representative who said;
Bithumb has stable management, so there won’t be any impact should the deal collapse.
Image source – Flickr
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