Sam Bankman-FTX Fried’s is still looking into ways to expand through acquisitions in the bitcoin business. SBF has recently financed several cryptocurrency startups, including Voyager Digital and BlockFi. The billionaire investor is offering a revolving credit arrangement for the troubled businesses. Meanwhile, FTX is rumored to be looking at another possible acquisition, this time in Asia.
FTX Is Interested in Purchasing Bithumb
FTX is in advanced talks to buy South Korean cryptocurrency exchange Bithumb. According to the article, the two parties have been discussing a prospective transaction for some months. According to a Bithumb spokesperson, there is no agreement in this regard. If the transaction goes through, Sam Bankman-Fried will have his wings expanded in the South Korean market, which is a significant element of the crypto ecosystem.
Sam Bankman-Fried stated earlier this year that he intends to spend billions of dollars acquiring other companies in order to expand further. SBF’s FTX stated that it was looking to obtain more funds in order to continue his purchase spree. This could increase SBF’s chances of investing more than the $1 billion he has already invested in the crypto market. Companies with big customer bases and experience are being sought to assist cover FTX’s deficiencies.
Dominance of Bithumb in South Korea
In a market dominated by Upbit, Bithumb accounts for 13% of South Korean crypto exchanges. According to September 2021 data, Bithumb holds the second largest market share in the country’s cryptocurrency ecosystem. Bithumb, which was founded in 2014, has a daily trading volume of approximately $569 million. Trades on the crypto exchange are available for up to 188 coins and 290 pairs.
On the other hand, Bithumb’s top executives are facing criminal charges for 100 billion won in fraud. The litigation is about a breach of contract that culminated in the indictment of the executives, including the owner of the exchange.