- South Korean exchange Bithumb up for sale once again.
- Bithumb chairman Lee Jung Hoon is under investigation for his role in the BXA token scandal.
- The exchange has fallen victim to hackers on numerous occasions.
South Korea’s biggest cryptocurrency exchange Bithumb is up for sale again, and is priced between 500 billion won and 700 billion won (~$430 million to $604 million). The first sale was in 2018.
The sale is currently being promoted by Bithumb holdings, which owns a 74% stake in Bithumb Korea. Bithumb Holdings was also responsible for the first sale in 2018 that was awarded to the BK Global Consortium led by BK Medical Group Chairman Kim Byung-gun.
However, the sale was canceled in October 2019 after Chairman Kim failed to attract investment and pay the balance.
Hindrances to the deal
Though some companies and investors have shown interest in taking over, a lot of hindrances are expected to occur until the deal is completed. Disputes over management rights and the conflict of interests among shareholders due to the complex governance structure might complicate the sale of Bithumb.
In addition to the disputes, the sale of Bithumb occurs soon after the South Korea police raided the exchange concerning a $25 million token sale hosted on its platform. Bithumb and its chairman Lee Jung-hoon are currently under investigation for fraud. All these allegations and problems might affect those who end up inheriting the crypto exchange.
On the other hand, buyers should also take note and abide by South Korea’s Special Payments Act, which digital currency service providers will need to comply with beginning in March 2021.
Bithumb has experienced numerous hacks over the past years. In March, 2019 its trading monitoring system detected a huge withdrawal of crypto assets from its hot wallet. Almost $12.5 million worth of EOS at that time was withdrawn and XRP worth $6.2 million was suspected to have been stolen. Furthermore, on June 20, 2018, the exchange also experienced another hack which resulted in the loss of almost $30 million worth of digital currencies.
Bithumb is South Korea’s leading cryptocurrency exchange with more than 4.77 million users.