[Executive Summary]

• Bithumb Holdings' largest shareholder Vidente acknowledged that it has considered selling Bithumb to FTX, an American virtual asset exchange. Some speculate that the deal will not be made due to Bithumb’s complex governance structure.

Bithumb Holdings' largest shareholder Vidente acknowledged that it has reviewed selling Bithumb to FTX, an American virtual asset exchange. Vidente stated in an electronic disclosure on July 26th, “It is true that we have contacted and negotiated with FTX to dispose of the investment securities of Bithumb Korea Co., Ltd. and Bithumb Holdings Co., Ltd.” It also stated, “We are considering all possibilities such as acquisition or joint management through joint sales or preferential purchase rights.” Personnel from Vidente explained that FTX has previously requested to acquire Bithumb, yet the negotiation started this year.

When the price of virtual currency plummeted this year, FTX provided emergency funds to a few virtual asset-related companies in a liquidity crisis and took over management rights. FTX's acquisition of Bithumb can also be interpreted as an attempt to purchase an exchange before its price recovers from the drop which resulted from the plummeted value of cryptocurrencies.

However, some speculate that FRX’s acquisition of Bithumb will not be finalized, considering that there have been numerous other companies that failed to do the same due to Bithumb’s complex governance structure. A market insider said, “Bithumb has the most complex governance structure of all VASPs in Korea. Other foreign companies including JP Morgan attempted to acquire the exchange, yet all were unsuccessful.” He continued, “The complex governance structure may cause trouble for the acquisition this time as well.”

It can be reasonably inferred that FTX is continuously attempting to enter the Korean virtual asset market. Market participants and especially those who aim to enter the Korean virtual asset market are recommended to track the development and progress of FTX’s efforts, for it is the world's largest VASP whose entrance would set an unignorable precedent and standards.