Last year in October, South Korea’s largest crypto exchange Bithumb announced to sell its 50% percent plus one share to Singapore-based BK Global Consortium for 400 billion won ($354 million). According to The Investor report, the deal is at the risk of falling apart.
The deal was initially meant to complete in February of this year, but the deadline to pay the final amount of contract was extended twice. In April of this year, the deadline to pay the full amount was pushed back on the condition that BK Global raises its stake from 50% to 70%.
Dr. Kim Byung-gun led BK Group last year had made the downpayment of $100 million to Bithumb. BK had planned to issue its own cryptocurrency after acquiring the Korean exchange. In July, Kosdaq-listed Dual Industrial announced to buy more than 57% shares in the BK Group for 235.7 billion won but the company later withdrew its offer.
Cho Yoon-Yyeong, who is behind Kosdaq-listed Cornerstone Networks, has assisted BK Global to raise capital. The report states that Cho put 150 billion won from his personal assets. A Bithumb official said that the exchange has stable management and there won’t be any impact if the deal collapses.In June 2018, Bithumb revealed that the exchange was hacked and 11 cryptocurrencies worth 19 billion won were stolen.