Crypto Exchange Zipmex in Talks; FTX Acquires Bithumb
Less than a week after suspending withdrawals on its platform, Zipmex has announced that it is considering a potential bid from interested parties, while FTX is reportedly in talks to acquire Korea’s Bithumb.
Struggling Crypto Exchange Zipmex Eyes Offer Talks
Struggling Singapore-based digital asset exchange Zipmex said it was considering possible offering discussions with interested parties, less than a week after suspending withdrawals on its platform.
In a tweet, Zipmex, which operates in markets including Singapore and Thailand, said its conversations with various interested parties “have progressed significantly.”
“One of these parties has offered terms in a memorandum of understanding, which include confidentiality obligations so they can begin due diligence,” the company said.
Last week, the company halted withdrawals on its platform due to what it described as a “competition of circumstances” beyond its control.
Founded in 2019, Zipmex, backed by Thailand’s Bank of Ayudha, has approximately 2 million users on its platform who can buy, sell, and earn interest on bitcoin, ethereum, and other crypto tokens.
A Bloomberg report said the decision stemmed from the platform’s exposure to struggling crypto lender Babel Finance. Hong Kong-based Babel Finance also temporarily suspended withdrawals and redemption of crypto assets in June as it struggled to pay its clients after the recent fall in the digital currency market.
FTX in Talks to Acquire Korea’s Leading Crypto Exchange Bithumb
Leading cryptocurrency exchange FTX is reportedly in talks to acquire Bithumb, the largest crypto exchange in South Korea for an undisclosed amount.
According to a Bloomberg report, Bahamas-based FTX has been in talks with Bithumb for months.
Bithumb, founded in 2014, reached unicorn status in 2021 as Koreans rushed into the cryptocurrency craze. Last week, however, prosecutors in Seoul raided Bithumb and several other exchanges as part of an ongoing investigation into Terra’s collapse in May.
FTX, on the other hand, raised $400 million from investors including SoftBank at a valuation of $32 billion in February. FTX is the owner and operator of FTX.com, a crypto platform that caters to a broad customer base, including retail and institutional investors outside of the United States.