Bitget plans to buy Thai exchange GMO-Z.com Cryptonomics weeks after $388M wallet hack

Bitget targets a licensed Thai exchange

Crypto exchange Bitget has announced plans to acquire Thailand's GMO-Z.com Cryptonomics. An exchange is a platform where people trade digital assets.

The deal would be made through BTGT Management (Thailand), a company in which Bitget says it holds an interest, according to an announcement shared with Cointelegraph. Bitget says the acquisition would let it bring its trading platform to Thai users.

The news comes weeks after a hack that Bitget says affected about $388 million of its hot and warm wallet infrastructure. Hot and warm wallets are online or partly online storage systems used to hold crypto.

Key details of the proposed deal

• Bitget says the transaction is handled through BTGT Management (Thailand), in which it holds an interest.
• GMO Internet disclosed the proposed sale to BTGT Management in a Sept. 24 filing, with completion targeted for Oct. 31.
• GMO-Z.com Cryptonomics runs Z.com EX, which launched in February 2021, and is listed by Thailand's Securities and Exchange Commission among licensed digital asset exchange operators.
• Completion depends on regulatory approval and other conditions.
• Bitget declined to say how much interest it holds in BTGT Management, or the financial and ownership terms of the proposed acquisition.

What Bitget's CEO said

"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.

Bitget's account of the September hack

Bitget says the Sept. 24 attack on its hot and warm wallet infrastructure affected approximately $388 million. According to Bitget's own account of the breach, attackers exploited a vulnerability in a third-party security product and issued fraudulent withdrawal commands.

Bitget said customer account balances were unaffected, and that it finished the phased restoration of withdrawals on Oct. 2.

On Oct. 17, Bitget also announced plans to discontinue services for certain users, describing the move as a "one-off exercise."

Where Thailand sits in Bitget's rules

Bitget's terms of use, updated Oct. 16, list Russia, Belarus and Kazakhstan among its prohibited jurisdictions. Thailand is also listed as a prohibited jurisdiction. The article says the proposed acquisition could give Bitget a route to serving the Thai market through a locally licensed operator.

What is confirmed

Bitget announced plans to acquire GMO-Z.com Cryptonomics through BTGT Management (Thailand). GMO Internet's Sept. 24 filing disclosed the proposed sale to BTGT Management and targeted completion for Oct. 31. GMO-Z.com Cryptonomics operates Z.com EX and is listed by Thailand's SEC as a licensed digital asset exchange operator. Bitget's own account states the Sept. 24 attack affected about $388 million, that customer balances were unaffected, and that withdrawal restoration was completed Oct. 2. Bitget also announced on Oct. 17 that it would discontinue services for certain users. The terms of use updated Oct. 16 list Thailand as a prohibited jurisdiction.

What is still unclear

The financial and ownership terms of the proposed acquisition have not been disclosed. Bitget declined to comment on how much interest it holds in BTGT Management. It is also not confirmed how the Thai regulatory approval process will proceed, or exactly which users are affected by the planned discontinuation of services.

Why it matters

If completed, the deal would give Bitget a way into Thailand's crypto market through a company that already holds a local license, even though Thailand appears on Bitget's list of prohibited jurisdictions. Completion is still subject to regulatory approval and other conditions, so the outcome is not certain.

Sources

• Cointelegraph