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$333 Million Bithumb Acquisition Deal in Jeopardy

A deal involving the sale of major South Korean crypto exchange, Bithumb is currently in jeopardy, anonymous sources familiar with the matter told Korean Herald today.

The Korean Herald reported that the deal involving Bithumb’s major shareholder, BTC Korea Holdings and Singapore-based BK Global Consortium is on shaky ground, due to failure on the part of the buyer to pay the full amount requested. 

Per the report, in October 2018 BTC Korea Holdings, which currently has a 76% stake of the entire Bithumb share, agreed to sell 51% stake to BK Global for 400 billion won (around $333 million).

BK Global reportedly made a down payment of $100 million last year, with a pledge to come through with the balance before the end of February. 

However, BK Global was unable to complete the purchase as planned due to decline in payment and has seen the deadline extended twice from April to September 30, on the condition that BK Global increases its stake from 51 to 70%. 

Sources familiar with the matter stated that BK Global has once more missed the September 30 deadline given by BTC Korea Holdings, the Korean Herald reports.  

BK Global’s Effort Toward Securing Bithumb’s Acquisition

Since BK Global declared its intention in purchasing some of Bithumb’s shares, the firm has made a significant move in securing the remaining capital for the acquisition. 

In July, BK Global declared an intention to sell 57.41% of its stake to Dual Industrial for 235.7 billion won ($196 million). However, at the time, the deal was not met with success and fell apart that same month.

Earlier this month, BK Global was rumored to have found another investor in Cho Yoon-hyeong, who invested about 150 billion won ($125 million) with the firm.

When Cho Yoon-hyeong was quizzed about the rumor making the round concerning whether BK Global deal with Bithumb could fall apart, he said:

“The deal is proceeding smoothly, and we’re working on details with BTC Holdings.”

Bithumb does not seem troubled on whether or not its deal with BK Global goes through. 

As Coinfomania reported last week, Bithumb announced plans to launch in India despite the stiff regulation currently conferred on cryptocurrency in the country by the Reserve Bank of India (RBI).  

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