This crypto winter, rumors of FTX rescuing or acquiring struggling crypto companies have proliferated – and now South Korean crypto exchange Bithumb is reportedly on FTX CEO Sam Bankman-Fried’s shopping list.
According to a report of Bloomberg, FTX is in late-stage talks to potentially acquire Bithumb, which has over 8 million registered users. The conversations are said to have been going on for “several months”.
When asked to confirm or deny the report, a representative from FTX said Decrypt “no comment.” Bithumb has not replied yet Decryptrequest for comment.
Although it has seen over $1 trillion in total volume traded on its exchange, Bithumb has struggled over the years. In 2020, Bithumb faced a number of court case and Houbi would have sought to acquire it, but never did.
Last month, FTX acquired Canadian crypto exchange Bitvo. In a statementBankman-Fried said the purchase was made “to expand FTX’s global reach.”
“Our expansion into Canada is another step in proactively collaborating with cryptocurrency regulators in different regions around the world,” Bankman-Fried added.
FTX is also buying struggling lender BlockFi in a $680 million credit agreement and acquisition.
And in June, rumors swirled that FTX was also in talks to acquire a trading platform. Robin Hoodwho dismissed 9% of its staff in April due to the slowdown in growth. Bankman-Fried has since denied the reports.
That said, it makes sense that FTX is looking to acquire crypto companies at a discount during this bear market. Bankman-Fried said earlier this month that FTX still has “a few billionwhich could be deployed to stabilize other crypto companies. In theory, these funds could also be used to buy them directly.
While it’s unclear whether the Bankman-Fried exchange will actually acquire Bithumb, FTX is clearly working to achieve what it believes to be its “responsibilityto stabilize the crypto industry as a whole during this turbulent time.
In the wake of the Celsius and digital travel bankruptcy filings, surprised retail investors were unable to access or withdraw their funds.
In response, Bankman-Fried said on Friday it was “happy to do what we can” to help Voyager customers by providing liquidity to the insolvent business.
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