Bithumb Confirms That BK Consortium Fails To Pay Acquisition Payment, What’s Next?

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Bithumb Confirms That BK Consortium Fails To Pay Acquisition Payment, What’s Next?

The issue of Bithumb sale to BK Global Consortium has been around since the second quarter of this year. However, BK Global Consortium is said to have failed to pay the expected acquisition payment as at a day before the deadline. This, therefore, raises question as to what might become of the described arrangement. Will bithumb remain unsold? If so, what’s next?

Bithumb Still Up For Sale

As per a report by crypto media platform, BlockInPress, as at today 30th of September, BK Global Consortium is yet to pay the agreed acquisition payment expected to be made in their pursuit of crypto currency exchange, Bithumb. This comes following a statement by Bithumb’s official,

“You must wait until today, which is the deadline, to know the situation.” “It is difficult to give an accurate answer in practice, and the deadline must pass.”

Bithumb’s Acquisition Payment Was Once Delayed

In April, it was reported that the acquisition of Bithumb by the BK Global Consortium (BXA), which is controlled by BK Group Chairman Kim Byung Gun, was delayed to September 2019. Initially, by the end of March, BXA was said to have signed the main contract to buy 50% + one share of BTC Korea Holdings, which was the largest shareholder of BTS Korea.
According to Bithumb officials in April,

“BXA decided to increase its stake in BTC Korea Holdings up to 70%, and the payment date was delayed six months later.”

The Deal Initially Announced In 2018

A deal initially erupted last year when Daily Economy in Seoul reported that Bithumb had been sold to BK Global Consortium. At the time, the deal was said to have been pulled off for about $353 million dollars. According to a report later published by The News Asia,

BK Global Consortium plans to maximize the potential of the exchange through its block chain e-commerce settlement system and stable coin operation, which greatly reduce commissions on the existing settlement system.

However, the deal was never completely pulled off until early 2019 when BlockInPress reported that the arrangements to purchase Bithumb had been postponed till September, 2019 of which today happens to be the deadline of acquisition payments.

Bithumb, which at the time was said to have experienced abnormal withdrawals later responded by giving an official announcement. In its statement,

“customer assets were safely stored in the cold wallet” and “unusual cryptocurrency deposit and withdrawal seems to have touched our assets.” “The abnormal withdrawal is estimated to have occurred at 22 o’clock on the 29th of last month, and we confirmed the external withdrawal situation and stopped the withdrawal service at 23:00.”

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Bithumb Confirms That BK Consortium Fails To Pay Acquisition Payment, What's Next?
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Bithumb Confirms That BK Consortium Fails To Pay Acquisition Payment, What's Next?
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The issue of Bithumb sale to BK Global Consortium has been around since the second quarter of this year. However, BK Global Consortium is said to have failed to pay the expected acquisition payment as at a day before the deadline. This therefore raises question as to what might become of the described arrangement. Will bithumb remain unsold? If so, what's next?
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Author: Dare Shonubi

Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com

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Dare Shonubi 247 Articles

Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com

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