Crypto Exchange FTX Explores Purchase Of South Korean Competitor Bithumb

Per a report from TheBlock, the popular crypto exchange FTX is exploring the potential purchase of Bithumb. The South Korean platform will engross the list of the Sam Bankman Fried company’s recent acquisitions.

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According to the report, FTX has been in talks to acquire Bithumb for months. The South Korean platforms have attracted controversy due to their security flaws, which have led to millions in losses for its customers, and most recently for being under the loop of local authorities.

The report claims Bithumb is part of the South Korean investigation regarding the collapse of the Terra ecosystem. Authorities are investigating the company behind the development of Terra, Terraform Labs (TFL), and its founders. The company used to have its headquarters in the Asian country.

If the purchase materializes, FTX will have acquired a platform processing over $600 million in daily trading volume. During the recent downside price action in the crypto market, the Bankman Fried company has been reported to be in talks to acquire U.S.-based trading platform Robinhood and Canadian exchange Bitvo.

In addition, FTX has become the lender of last resort for multiple crypto companies affected by the Terra (LUNA) catastrophe. The exchange has provided credit lines and entered into a partnership with crypto lending firms BlockFi and Voyager.

On BlockFi, FTX will provide them with a $400 million credit facility. This will help the crypto lending firm to continue its operations while the Bankman Fried company will have a purchase option of up to $240 million.

Voyager will also receive a credit line as the lending company filed for bankruptcy and halted withdrawals. Today, FTX’s CEO proposed Voyager users “early liquidity” allowing them to withdraw a percentage of their funds.

Crypto Exchange FTX Presents Plans To Voyager Users

Voyager faced backlash from its users when it presented its “restructuring process”. The platform claimed customers with USD deposits will receive all of their funds, while crypto users will receive a “mix of assets” with a portion largely dependent on a legal proceeding with failed crypto hedge fund Three Arrows Capital (3AC).

This company allegedly owns Voyager over $600 million and has begun a process to hold 3AC “accountable” and recovered the funds to pay back its clients. Users complained claiming that they want to be made whole with the crypto assets originally held in their accounts.

FTX proposed a solution by offering Voyager customers access to a portion of their funds by starting an account with FTX funded by “an early distribution on a portion of their bankruptcy claims”. Voyager users will be able to access their funds on the exchange platform.

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As FTX clarified, this proposal is voluntary. Therefore, users won’t be required to participate. The exchange expects to carry out these operations if any Voyager user decides to opt-in, by early August. Bankman Fried said:

Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims. The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks