This is a first – CryptoTraders Pro has learned that a South Korean plastic surgeon has acquired a majority of Bithumb. Bithumb is one of the largest cryptocurrency exchanges in the cryptocurrency market. BK Global, a Singapore-based firm, is currently headed by Kim Byung-gun. Bithumb is reportedly working to release a Decentralized Exchange (DEX).
According to Yonhap News Agency, a South Korean news agency, BK Global has acquired Bithumb, the largest cryptocurrency exchange in South Korea. Sources claim that BK Global bought a 50% stake plus 1 share from BTC Korea, the platform’s largest shareholder.
Before the sale, BTC Korea owned more than 75% of Bithumb’s shares. BK Global reportedly acquired the majority ownership of Bithumb for about 400 billion won ($353 million USD). Once the deal is finalized, Kim Byung-gun, a noted plastic surgeon, will become the exchange’s largest shareholder.
A BK Global representative commented on this development to The Asia News, saying :
“Kim Byung-gun demonstrated his multinational management ability in the field of medical care, fintech, and blockchain in Singapore. He is the right person to pursue the systemization and globalization of the virtual currency exchange.”
According to reports, Kim plans on establishing a Bithumb DEX via a Hong Kong subsidiary later in October. Kim believes that establishing a DEX would make it easier to trade cryptocurrency as well as combat the efforts of hackers, making Bithumb safer to use as a platform.
Moving forward, BK Global believes that the acquisition of Bithumb is part of its goals to be a robust blockchain-based e-commerce settlement system. According to a company official:
“E-commerce companies such as Amazon and Alibaba are receiving large commission fees, which have become an issue for consumers. Blockchain payment systems can reduce those commission fees. We will also promote the introduction of stable coin to stabilize the payment system. We will be in conjunction with the global exchange scheme to take advantage of the coin linked to the US dollar.”
Bithumb was hacked earlier in 2018. Coinrail, another South Korean exchange, reported a hack just two weeks prior to Bithumb’s hack. Fortunately, Bithumb was able to recover nearly 50% of the cryptocurrencies stolen during the attack.
Immediately after the attack, the platform suspended deposits, withdrawals, and new account openings. Issues between Bithumb and its banking partner further exasperated problems with new account registrations.
Despite the hack, Bithumb reported a semi-annual profit of $35 million dollars. During the acquisition process, BK Global estimated that Bithumb was worth $1.8 billion dollars, which is significantly higher than the $1 billion valuation of the exchange on the market.
We think Bithumb did quite well for itself, as did BTC Korea with its sale.
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