Bithumb Sells $350 Million Stake in Its Cryptocurrency Exchange

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Bithumb

Bithumb, one of the largest cryptocurrency exchanges in South Korea by its daily trade volume, has sold more than 38 percent of its ownership to a blockchain consortium in Singapore, Coindesk Korea reported this morning. The stake was sold for 400 billion won, or $350 million USD.

Stake Sold

Bithumb signed the deal on October 11th with BK Global Consortium. BK Global Consortium is a blockchain investment firm that was formed by BK Global, a plastic surgery medical group in Singapore.

BTC Holdings Company currently owns 76 percent of Bithumb’s equity and has agreed to sell BK Global 50 percent +1 shares of that 76 percent ownership.

Coindesk Korea reported that the acquisition deal valued the South Korean cryptocurrency exchange at more than 1 trillion won, or near $880 million USD. Kim Byung Gun, chairman of BK Group, will be the largest shareholder of Bithumb.

>> Bithumb Reopens User Registration

Recovery?

Bithumb has been in hot water for the last six months and has even been excluded from the global index on CoinMarketCap. The South Korean cryptocurrency exchange encountered a $14 million USD hack in June of this year. Originally, the estimates were around $31 million USD, but the actual number was clarified weeks later.

However, in the first half of 2018, it was reported that the exchange made $35 million USD in profits. In early August, the cryptocurrency exchange halted all new user accounts, plus deposits and withdrawals. Three weeks later, Bithumb opened new account registrations.

The latest negative rumors surrounding Bithumb accuse the exchange of participating in wash trading.

This Twitter thread is not a good look for the cryptocurrency exchange. Hopefully, things will shift around at the exchange with new faces in the decision making process. Bithumb used to be one of the top 10 cryptocurrency exchanges used around the world last year but has taken a sharp fall since.

Featured Image: Depositphotos/© mostockfootage

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