Report: FTX and Bithumb in acquisition talks

Crypto-trading platform FTX and crypto-trading platform Bithumb are in advanced discussions that could lead to FTX buying the South Korean company, Bloomberg reported.

FTX’s co-founder was billionaire Sam Bankman-Fried.

Bloomberg based the report, which stated that the discussions have been underway for months, on an unnamed source.

A Bithumb spokesman reportedly told Bloomberg: “We cannot confirm anything at this stage.”

An FTX spokesman declined to comment, according to the news service.

Bankman-Fried, according to Bloomberg, is seeking to capitalize on the cash in cryptocurrencies and companies in the sector by having FTX and FTX U.S. buy firms at a discount from pre-crash prices and already has committed $1 billion to the shopping spree, according to the report.

Moreover, Bankman-Fried’s companies are seeking to raise capital that could be used for more acquisitions, according to Bloomberg.

Bankman-Fried has done his shopping for cryptocurrency operations with a fortune Forbes recently estimated was about $20 billion. Bloomberg, meanwhile, put Bankman-Fried’s fortune at about $8.7 billion — roughly half of its year-ago value.

Just why Bankman-Fried has been snapping up crypto companies has been a matter of some debate. His own remarks have led to some confusion over whether he bought companies to prop a struggling sector by serving as a financial backstop or whether he was just benefiting from bargain-basement prices.

In June, he reportedly said: “I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves,” Bankman-Fried said in June. “I think that’s what’s healthy for the ecosystem, and I want to do what I can help it grow and thrive.”