Nearly one year afterit was announcedthat South Korea’s largest cryptocurrency exchange, Bithumb, would be sold to BK Global Consortium for (billion won) $ 333 million), the deal appears to be going nowhere.
The acquisition, which would see BK Global Consortiumpurchase a 50 percent stakeand one share, was originally announced by Bithumb operator BTC Korea Holdings on October 12, 2018. The purchasing company also put down $ 100 million as a down payment and had plans to create its own cryptocurrency, which hasn’t materialized either.
Where’s The Money?
The deal was supposed to be completed in February of this year but has seen two extensions. The deadline to pay the final acquisition amount was also extended twice. In April, payment was delayed on the condition that the purchasers increase the stake to 70 percent.
Today is the deadline to pay the remaining amount for the cryptocurrency exchange’s acquisition, and it seems that payment will not be made. As reported byThe Korea Herald, “industry sources” claim that the BK Group’s chairman, plastic surgeon Dr. Kim Byung-gun, and its consortium have not completed the full payment.
Funding Issues
Speculation exists that BK Group has some financial problems related to the agreement after a failed deal saw the company sell 57. 41 percent of it to Dual Industrial, a Kosdaq-listed company, for 235 .7 billion won. This move ultimately did not complete and has been seen by some as a means of financing the purchase of Bithumb.
Similar efforts continued this month when Cornerstone Networks’ Cho Yoon-hyeong reportedly pumped 450 billion won into BK Group. Cho stated today:
The deal is proceeding smoothly, and we’re working on details with BTC Holdings.
Bithumb Not Affected
Meanwhile, Bithumb claims that the deal is essentially irrelevant to the operation of South Korea’s largest cryptocurrency exchange. Notably, thecrypto exchangereporteda $ 180 million lossfor the year 2018.
A representative stated:
Bithumb has stable management, so there won’t be any impact should the deal collapse.
Bithumb wasinfamously hackedearlier this year to the tune of $ 20 million.
Last modified (UTC): September 30, 9: 09 AM
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