Korean-based gaming giant Nexon is going to acquire Bithumb, South Korea’s largest cryptocurrency exchange, in terms of trading volume.
According to local news reports, the gaming company has made a deal of $460 million. However, both have agreed on the acquisition, but the agreement has not yet done.
Bithumb’s chairman Lee Jung Hon decided to sell the crypto company last month. It was reported last month that another exchange Huobi was interested in purchase, but the deal never succeeded.
Bithumb is also infamous because the law enforcement agencies started prosecution of the exchange’s founders. The legal authorities accused Bithumb’s owner of selling illegal tokens worth around $27.5 million. In September 2020, the local Police also raided the crypto firm’s headquarters as a part of the investigation.
65% Stake in Bithumb
Some reports also claim that Nexon recently purchased 65% shares of South Korea’s largest cryptocurrency exchange. According to the report:
“Nexon is reported to have signed a memorandum of understanding (MOU) with the seller earlier this month to take over all of Bithumb’s shares held by Chairman Lee Jung-hoon and others. It is reported that out of the total stake in Bithumb, Nexon acquires 65%.”
Nexon has a record of investing in crypto-related companies and firms. The tech giant purchased over 65% shares of Korean third-biggest exchange Kobit. It got acquisition of 65% stake in exchange for 91.3 billion won. In 2018, it also became successful in getting an 80% stake in Europe-based exchange Bitstamp for 434.9 billion won.
Bithumb is the largest crypto exchange in South Korea in trading volume and is known for high liquidity in the region. As per the on-chain data of CoinGecko, it witnessed a total trading volume of more than $2.6 billion in yesterday’s trading session.
The Bithumb’s bad image created as a result of criminal prosecution might improve after its acquisition by the Japan-based Gaming firm. Famous crypto analyst Joseph Young said it would “improve the image around the most dominant crypto trading platform in the local market.”
Local news media outlets have reported differently on the amount to be paid on the exchange’s acquisition. Some have revealed that Nexon will have to pay $460 million (500 billion won), while another media agency claimed the gaming titan would pay $600 million (650 billion won).