S Korea’s Bithumb Appears to be Looking for Buyers, Again

By James Gray·23 September 2020·1 min read

Key Points

South Korea's largest crypto exchange heads to auction.
Bithumb, which commands more than half the country's digital asset trading, attracted multiple bidders after its owners decided to put it on the

South Korea's largest crypto exchange heads to auction. Bithumb, which commands more than half the country's digital asset trading, attracted multiple bidders after its owners decided to put it on the market. The reported asking price stands around $600 million, with interested parties submitting offers ranging from $430 million to that ceiling. Several potential buyers have submitted letters of intent, though their identities remain undisclosed.

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The exchange dominates South Korea's crypto landscape with 4.77 million users and processes over 50% of the nation's trading volume. Yet the company faces serious legal troubles. Seoul's Metropolitan Police have conducted two raids this month, investigating suspected illegal activity. Chairman Lee Jung Hoon faces serious allegations, including accusations that he evaded property responsibilities and caused investor losses totaling around $25 million.

These legal complications make the sale considerably harder. Samjong KPMG, the Korean branch of the global firm, is managing the transaction and must verify that any deal complies with South Korean law. Buyers will also need to navigate the Special Payments Act, recently revised legislation that takes effect in March of next year. Industry observers describe the sale as the current owners' effort to escape their legal troubles while recovering what remains of their investment before leaving the market.

Discussions about selling Bithumb are not new. In 2018, investors considered having BK Global Consortium purchase the exchange for around $345 million. That deal fell apart when the consortium failed to deliver the full payment.

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