South Korean Gaming Giant Planning to Buy Crypto Exchange Bithumb for $460 Million

Nexon, the South Korean multi-billion dollar gambling conglomerate, is reportedly planning to buy a 65 percent stake in troubled crypto exchange Bithumb, valued at around 500 billion won ($ 460 million).

● According to local media reports, Nexon will buy all of the shares in Bithumb chairman Lee Jung Hoon, including several other stocks that total up to 65% of the stock’s outstanding shares.

● The Tokyo Stock Exchange-listed video game giant has since signed a Memorandum of Understanding (MoU) with sellers to facilitate the transaction. The letter of intent was signed earlier this month, the reports read.

● Nexon already owns two other crypto exchanges – Korbit, Korea’s third largest exchange, and the European exchange Bitstamp, which it acquired three years ago for around $ 80 million and $ 400 million, respectively.

● Bithumb, Korea’s largest bitcoin exchange, has been rocked by fraud problems involving top company employees. The authorities in the Asian country are currently investigating the platform for financial fraud with $ 25 million.

● Lee Jung Hoon, the chairman, is accused of pocketing millions of dollars by selling Bithumb’s tokens to customers without listing them. As a result of the fraud, the exchange was put up for sale last year.

● Founded in 1994, Nexon is a major player in the global gaming industry. Some of the most popular game titles are Dungeon & Fighter, Kart Rider, and Nexus: The Kingdom of the Winds.

● Nexon’s shares fell 0.16% in Tokyo trading on Thursday to hit 3,180 Japanese yen ($ 30.8). The company has a market capitalization of 2.82 trillion yen ($ 27.3 billion).

What do you think of Nexon as it acquires a stake in Bithumb? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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