Kiwoom Securities Suspends Bithumb Stake Acquisition Amid Governance Concerns

Kiwoom Securities halts Bithumb stake acquisition due to complex governance and financial burdens, signaling institutional caution in the Korean crypto sector.

Woofun AI reports that Kiwoom Securities has effectively paused its acquisition of a stake in South Korean cryptocurrency exchange Bithumb. A company official stated that internal sentiment has shifted against the deal, citing Bithumb’s complex governance structure and the growing financial burden associated with the transaction. Kiwoom Securities declined to confirm the matter when approached for comment.

Sources familiar with the discussions noted that the deal’s structure posed significant challenges, including unclear decision-making processes and potential liabilities. Bithumb, one of South Korea’s largest cryptocurrency exchanges, has faced regulatory scrutiny and ownership disputes in recent years, which have complicated its corporate governance. The potential acquisition had been under consideration as part of Kiwoom Securities’ broader strategy to expand into the digital asset sector.