Disclaimer: Nexon has subsequently denied reports that it is engaged in an conquering deal with Bithumb.

Later a troubled few months, crypto substitution Bithumb looks like information technology's ready on turning over a new leaf through an acquisition by ane of Republic of korea's top gaming firms.

South Korean media reported on January. vii that Nexon, a multi-billion dollar gaming conglomerate, has signed a memorandum of agreement, or MoU, to acquire the commutation at an evaluated cost of 650 billion won ($460 million).

Nexon, led by CEO Kim Seoung-Ju, volition reportedly piece of work with one of the major shareholders in Bithumb, Vidente, to buy out the commutation and take command of the company, crypto journalist and Cointelegraph correspondent Joseph Young has summarized. According to Southward Korean media, Nexon plans to have a 65% stake in Bithumb.

As the study notes, Bithumb'due south existing shares are trading at a total value of 1 trillion won ($914 million) on the over-the-counter market, meaning that the deal, if successful, will allow Nexon to take over at a "discounted price."

The sale of the substitution has reportedly been in the works since late August 2020, with a preliminary bidding held in September at which a number of financial and strategic investors, including domestic and strange private equity fund managers, bid for success.

Even so the ongoing police force investigation involving Lee Jung Hoon, chairman of board at Bithumb Korea and Bithumb Holdings, appears to accept slowed down the process.

The report notes that the legal entanglement of the exchange's electric current shareholders, who are besides being sued for embezzlement by investors, could make it difficult for the exchange to secure the legally required registration as a crypto entity with S Korean authorities.

An conquering and change in management could articulate this regulatory obstruction. Immature has commented that Nexon's acquisition would, more more often than not, "amend the image around the nigh ascendant crypto trading platform in the local market place."

Nexon's holding company, NXC, has previously invested in cryptocurrency and fintechs, including the well-known exchange Bitstamp. Given Bithumb'south prime number position equally South Korea's largest crypto commutation by trading volume, Nexon's market place authorization is expected to benefit if the acquisition is successful.

In the 3rd quarter of 2020, the number of subscribers to Bithumb reportedly exceeded 5 one thousand thousand, and the company is said to have plans to expand its products and upgrade its compliance measures in the hope of securing a virtual nugget business license.