Media: Huobi plans to acquire Bithumb and bitFlyer

The cryptocurrency exchange Huobi is examining the possibility of purchasing two major trading platforms: South Korea’s Bithumb and Japan’s bitFlyer. This was reported by journalist Colin Wu.

Exclusive: Wu learned that Huobi, China’s largest exchange, is trying to acquire Japan’s largest exchange Bitflyer and Korea’s largest exchange Bithumb. The price of Bitflyer is US$500 million. However, as Huobi is investigated by the Chinese government, both will be suspended. pic.twitter.com/rORH7x1EMn

— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 17, 2020

According to him, bitFlyer, with 2.5 million users, is valued at $500 million. The value of Bithumb ranges from $430 million to $600 million.

Such figures called by the media in September, when information about the company’s sale surfaced after raids and interrogations of the exchange’s CEO Li Jong-hoon in the case of fraud involving the native token BXA.

«Huobi recognises the risks associated with dependence on the Chinese market, so it is expanding overseas very quickly. However, Japan and South Korea are not the best targets for investment. Their users are very closed, and the government regulates [industry] very strictly,» the journalist wrote.

Huobi also recognises the risk of relying too much on the Chinese market, so it is very urgent to expand overseas markets. But Japan and South Korea are not a good investment target. Their users are very closed, and the government has super strict supervision.

— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 17, 2020

Wu also, citing an anonymous blogger, said that Binance wanted to buy Bithumb for $400 million. However, the seller expressed interest in Huobi’s offer of $500 million.

Interestingly, a Chinese anonymous blogger disclosed on November 9 that Huobi was competing with Binance for Bithumb, the largest exchange in South Korea. Binance offered 400 million U.S. dollars, but Huobi snatched it with 500 million U.S. dollars. pic.twitter.com/9XwFgmUa4J

— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 17, 2020

Wu noted that talks on the deals were hindered by Huobi’s problems with Chinese authorities. Earlier, a journalist said about the possible arrest of Robin Zhu, but exchange representatives denied this information.

As regulators’ troubles mounted, withdrawals from Huobi to Binance on November 13 reached an all-time high — more than 16,500 BTC worth about $300 million.

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