After two police raids within a month, South Korea’s Bithumb appears likely to be sold, with buyers already submitting offers
According to a local newspaper, the Herald, the exchange has been put up for sale to the highest bidder with an asking price reportedly around $600 million. Several prospective buyers have reportedly submitted letters of intent offering between $430 million and $600 million. The identities of these interested parties were not disclosed at the time of reporting.
Bithumb is currently the largest cryptocurrency exchange in South Korea, handling more than 50% of the country’s trading volume. The platform serves approximately 4.77 million users, making it a central hub for cryptocurrency trading in the nation.
Legal confrontations
The exchange has made headlines recently for troubling reasons. Seoul’s metropolitan police executed two raids at Bithumb this month amid suspicions of unlawful activity. Investigations are targeting the exchange’s executives, including its president, Lee Jung Hoon. Lee faces serious allegations, including shirking ownership responsibilities and deliberately causing losses estimated at $25 million for investors.
Challenges to a sale
These legal issues complicate efforts to sell Bithumb. Samjong KPMG, the Korean arm of KPMG, has been appointed to manage the sales process and ensure compliance with national regulations. Any buyer will also be required to comply with the revised Special Payment Act, which takes effect in March of next year.
Several news outlets report that South Korea’s investment banking sector views the sale of Bithumb Korea as an attempt by current investors to exit amid managerial and legal disputes. Market insiders suggest those investors may seek to recover their capital before leaving the market.
This is not the first time a sale of the exchange has been discussed. In 2018, BK Global Consortium was widely reported as a potential buyer, but that deal collapsed after the investor failed to pay the full agreed amount, which was reported to be $345 million.