South Korean Conglomerate, NEXON, Denies Reports Linking It to The Sale Of Bithumb Exchange For $460M
South Korean gaming conglomerate Nexon Co. Ltd. denies reports connecting it to the purchase of troubled crypto exchange, Bithumb. The deal was reported to cost the buyer over $460 million.
According to reports, Bithumb crypto exchange will continue looking for a buyer for a bit longer after South Korean gaming conglomerate NEXON Co. Ltd. denied any connections to the purchase. A spokesperson from the company stated, “Nexon has not invested or acquired Bithumb and has no plans to do so.”
The email sent by the company further clarified that the reports, which “arose from an inaccurate news report last week,” are false and should not be believed. The email further states,
“We cannot comment on the investment plans of other companies.”
NEXON was ready to fork out 500 billion Korean won ($460 million) to purchase 65% of Bithumb’s stake.
Bithumb, the sixth largest crypto exchange across the world, has been in negotiations with several companies since 2018, intending to find a buyer. In October 2018, BK Consortium agreed to purchase a 50% plus one stake in Bithumb, giving it controlling power for a price of $333 million. However, in September last year, the deal was called off after the company failed to make full payments to complete the deal.
This opened a leeway for other investors to purchase the South Korean based exchange with the full acquisition price set between 500 billion won ($460 million) and 700 billion won ($644 million). Chinese exchange, Huobi, is one of the crypto exchanges interested in purchasing Bithumb, local reports noted. Huobi sees this as an easy route to enter the Korean market and easily comply with its crypto laws.
However, the purchase of Bithumb has been riddled with several legal challenges as a police raid on Bithumb Korea and Bithumb Holdings chairman Lee Jung Hoon’s offices complicated the sale. In a separate case, police raided the Bithumb Holdings buildings for the second time in a fortnight on charges of fraud connected to Bithumb’s $25 million ICO fundraising of its BXA token – which was never released.