Media: Nexon Group to acquire South Korea’s largest cryptocurrency exchange Bithumb

The Nexon Group, a video-game company, intends to acquire South Korea’s largest cryptocurrency exchange, Bithumb. A signed memorandum of understanding envisages the purchase of 65% of the trading platform’s shares, according to the local media.local media.

According to the report, the deal is worth about 500 billion won (~$457 million). On the over-the-counter market, such a block of shares is valued at about 650 billion won, and Nexon is buying it at a discount, the notice notes.

The search for a buyer of Bithumb resumed in August last year, with the exchange selecting Samjung KPMG as the organizer of the sale. The proposal attracted a number of foreign investors and local private equity funds.

In the publication’s view, the potential deal was hindered by problems between Bithumb and its chairman Lee Jong-hoon with law enforcement. In September, the police carried out three searches at the company’s offices in search of additional evidence related to charges against Hoon. He is suspected of fraud in the BXA token sale, the alleged losses to investors from which are estimated at about 30 billion won (~$25 million).

Lee Jong-hoon is the main shareholder of Bithumb.

In October, the National Tax Service of South Korea confirmed the legitimacy of collecting an additional tax of 80 billion won (~$73 million) from the exchange. The agency issued the demand to the company at the end of 2019.

In November, the media reported interest in acquiring Bithumb from foreign competitors — Huobi and Binance.

Back in 2018, reports surfaced that Nexon would acquire the oldest European exchange Bitstamp. The head of the company denied the information, but later a corporate report confirmed Nexon’s link with the crypto trading platform.

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