Bitget Plans Acquisition of Thai Crypto Exchange GMO-Z.com Cryptonomics After $388M Hack
Key Takeaways
- •Bitget plans to acquire Thailand's GMO-Z.com Cryptonomics through BTGT Management (Thailand), a company in which it says it holds an interest.
- •GMO Internet disclosed the proposed sale in a Sept. 24 filing, with completion targeted for Oct. 31 and subject to regulatory approval and other conditions.
- •GMO-Z.com Cryptonomics operates Z.com EX, a digital asset platform launched in February 2021 that is listed by Thailand's Securities and Exchange Commission among its licensed exchange operators.
- •The acquisition follows a Sept. 24 attack on Bitget's hot and warm wallets that affected approximately $388 million, though the exchange said customer balances were unaffected and withdrawals were restored by Oct. 2.
- •Thailand is listed as a prohibited jurisdiction in Bitget's updated terms of use, so the proposed acquisition could offer the exchange a route to serve the market through a locally licensed operator.
Crypto exchange Bitget has announced plans to acquire Thailand's GMO-Z.com Cryptonomics, a move the company says will extend its Southeast Asia presence weeks after a security breach affected its hot and warm wallets.
The proposed transaction involves BTGT Management (Thailand), a company in which Bitget says it holds an interest, according to an announcement shared with Cointelegraph. Once completed, the deal would allow Bitget to introduce its trading platform 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.
GMO Internet, the Japanese parent of GMO-Z.com Cryptonomics, disclosed the proposed sale to BTGT Management in a Sept. 24 filing, targeting completion for Oct. 31. Bitget's announcement identifies its involvement in the transaction, though the company declined to comment on the size of its interest in BTGT Management or on the financial and ownership terms of the proposed acquisition.
GMO-Z.com Cryptonomics operates Z.com EX, a digital asset platform that launched in February 2021. Thailand's Securities and Exchange Commission lists the company among its licensed digital asset exchange operators. Completion of the transaction remains subject to regulatory approval and other conditions.
Deal follows September wallet breach
The proposed acquisition comes weeks after a Sept. 24 attack on Bitget's hot and warm wallet infrastructure, the internet-connected wallets used to process user transactions. In its account of the breach, Bitget said approximately $388 million was affected after attackers exploited a vulnerability in a third-party security product and issued fraudulent withdrawal commands.
The exchange said customer account balances were unaffected and that it completed 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.” The company's terms of use, updated Oct. 16, list Russia, Belarus and Kazakhstan among its prohibited jurisdictions. Thailand is also listed as a prohibited jurisdiction, although the proposed acquisition could provide Bitget with a route to serving the market through a locally licensed operator. Whether the transaction clears Thai regulatory review and meets the Oct. 31 completion target is the next checkpoint for that plan.
