Sam Bankman-Fried, the originator of the cryptocurrency exchange FTX, is speeding up his acquisition drive with ambitions to buy the Bithumb cryptocurrency exchange, which is situated in South Korea.
According to a July 26 report by CNBC, Vidente, the owner of Bithumb, acknowledged the acquisition and mentioned that discussions have already been had over a potential sale.
FTX is evaluating many possibilities, including a full acquisition of Bithumb or shared control of the exchange if the deal goes through.
Additionally, the arrangement would probably increase Bithumb’s footprints in Asia, given that the company has already inked several deals there; at the moment, Bithumb is one of the most well-known cryptocurrency exchanges in the region.
FTX’s Is Not Welcomed in South Korea
When South Korea is tightening cryptocurrency laws, FTX may decide to buy Bithumb. Interestingly, the current attempt by FTX to join the area has been rebuffed by influential financial leaders in the nation.
According to Lee Tai-ki, a researcher at the Korea Institute of Finance, “At this time, there is no reason for FTX to enter the Korean crypto market with the financial authorities tightening the laws and prosecutors expanding their probe into crypto exchanges.”
A recent government raid on significant South Korean crypto exchanges as part of a larger investigation into the breakdown of the Terra (LUNA) ecosystem has revealed the nation’s tight control over the cryptocurrency industry.
Bankman-fried’s Quest to ‘Save’ Cryptocurrency Firms?
It is essential to note that most companies have been harmed and are finding it difficult to continue operating due to the accelerated crypto market collapse. In order to navigate the choppy waters, Bankman-Fried has indicated an interest in saving a number of enterprises.
Since then, FTX has made many high-profile acquisition transactions, including the option to purchase BlockFi, a company that lends cryptocurrency, for a maximum of $240 million. The amount is far less than the company’s prior worth of $4.8 billion.
FTX made another agreement to purchase the Japanese cryptocurrency exchange Liquid.
Businesses have been forced into bankruptcy as a result of the broader market collapse, with lending platforms Celsius and Voyager Digital being two notable examples. Interestingly, Bankman-Fried provided Voyager Digital with a loan through his business, Alameda Research.