Leading cryptocurrency exchange FTX continues its shopping spree as reports claim that the Sam Bankman-Fried led firm is very much interested in taking over South Korea’s second largest crypto exchange, Bithumb.
According to sources familiar with the matter, Bloomberg revealed that FTX and Bithumb are in “advance talks” with details being worked on for months now.
Although the exchange has over 8 million users registered and has seen a trading volume of $1 trillion, Bithumb has somewhat been struggling in the last years. While involved in a number of lawsuits, crypto platform Huobi was said looking to acquire the firm in the past, which nevertheless never materialized.
Will the Korean government let FTX make the deal?
Whether the FTX Bithumb deal will go through, remains to be seen. Korean government is known for its protective stance and as Cryptoquant CEO Ki Young Ju tells his followers on Twitter, it does not want to risk losing control:
“I’m skeptical if FTX can buy Bithumb. Similar acquisition deals always have failed due to the government’s interference. K-gov does strong capital controls. Kimchi premium, for example. This deal can bring foreign capital via crypto and makes them lose control.”
I’m skeptical if FTX can buy Bithumb.
Similar acquisition deals always have failed due to the government’s interference.
K-gov does strong capital controls. Kimchi premium, for example. This deal can bring foreign capital via crypto and makes them lose control. https://t.co/5vYA7aQOQ6 pic.twitter.com/WLVsv8H5zg
— Ki Young Ju (@ki_young_ju) July 22, 2022
https://platform.twitter.com/widgets.js
More discount crypto deals coming up for FTX?
Bankman-Fried has been shopping around for bargains during this bear market. Mid-June, FTX announced the acquisition of Canadian crypto exchange Bitvo, calling it “another step in proactively working with cryptocurrency regulators in different geographies across the globe.”
Although the FTX has denied it since, rumors have been going around of the exchange interested in purchasing trading app Robinhood. Plausible, when you consider that Bankman-Fried personally has a 7.6% stake of $650 million in the trading platform.
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Source: Igaming
