Bitget Eyes Acquisition of Thailand Exchange Following $388M Security Breach
Through the planned acquisition, Bitget would gain access to Thailand's cryptocurrency marketplace via an exchange holding a local license.
Cryptocurrency exchange platform Bitget has revealed its intention to purchase GMO-Z.com Cryptonomics, a Thai-based exchange, as part of its strategy to grow its presence across Southeast Asia just weeks following a significant security breach that affected its hot and warm wallet systems.
BTGT Management (Thailand), an entity in which Bitget claims to maintain a stake, is the vehicle for the planned transaction, based on a statement provided to Cointelegraph. Through this acquisition, Bitget aims to make its trading services available to users in Thailand.
"Thailand is an important part of Southeast Asia's digital asset landscape, and this acquisition gives us a great opportunity to establish local operations in a thriving country," said Bitget CEO Gracy Chen.
In a filing dated Sept. 24, GMO Internet revealed the planned sale to BTGT Management, with a targeted closing date of Oct. 31. Bitget's statement confirms the company's participation in this deal.
The organization refused to provide details regarding the extent of its interest in BTGT Management or the financial details and ownership structure associated with the planned acquisition.
Z.com EX, the exchange platform operated by GMO-Z.com Cryptonomics, began operations in February 2021. The company appears on the list of licensed digital asset exchange operators maintained by Thailand's Securities and Exchange Commission.
The transaction's finalization is contingent upon receiving regulatory approval along with satisfying other conditions.
Thai expansion comes weeks after hack
This planned acquisition emerges just weeks after a Sept. 24 cyber attack targeting Bitget's hot and warm wallet systems. According to Bitget's description of the incident, roughly $388 million was impacted when attackers took advantage of a security flaw in a third-party security solution and executed unauthorized withdrawal requests.
According to Bitget, customer account balances remained untouched, and the exchange successfully completed a gradual restoration of withdrawal functionality on Oct. 2.
Additionally, on Oct. 17, Bitget revealed intentions to terminate services for specific users, characterizing the action as a "one-off exercise."
The terms of use for Bitget, which were updated on Oct. 16, identify Russia, Belarus and Kazakhstan as prohibited jurisdictions. Thailand also appears on the list of restricted jurisdictions, though the planned acquisition would potentially enable Bitget to access the Thai market by operating through a locally licensed exchange provider.