After two police raids in the space of a month, South Korea’s Bithumb will be sold to buyers who have already made offers
According to a local Herald distributor, the exchange went on sale to the highest bidder for an amount in the range of $ 600 million. To date, several buyers are reported to have sent letters of intent making offers between $ 430 and $ 600 million. The identity of these stakeholders remains unknown.
Bithumb is currently the largest cryptocurrency exchange in South Korea. The exchange handles more than 50% of the volume of domestic trade. It has a base of 4.77 million users, making it the main driver of cryptocurrency trading in South Korea.
Problems with the law
The stock market has made headlines in the recent past, but not for good reason. The Seoul Metropolitan Police broke into the exchange twice this month, after suspecting illegal activities. The police are also investigating the exchange executive, including President Lee Jung Hoon. Jung Hoon faces serious charges, including evasion of property liabilities and deliberate loss of the investor in the $ 25 million region.
Difficult to sell
These disagreements with the law make it considerably difficult to sell Bithumb to interested buyers. Samjong KPMG (subsidiary of KPMG in Korea) will handle the sale and oversee compliance with national laws. The buyer will also be indebted to the administration of the bill, recently revised from the Special Payments Law, as of March next year.
Various media outlets report that the South Korean investment banking sector regards the sale of Bithumb as an attempt by the investors involved to escape its administrative and legal disputes. Investors will clearly try to save their investment before leaving the market unscathed.
This is not the first time that we have talked about selling the exchange. In 2018, it was believed that the BK Global Consortium would buy it. The deal, however, failed after the investor failed to pay the full amount, valued at around $ 345 million.