Bitget Pursues Acquisition of Thai Exchange After $38.8 Million Hack

Crypto exchange Bitget is pursuing the acquisition of a Thai exchange just weeks after suffering a major hack, as it moves to expand in Southeast Asia.

Cointelegraph reported on Oct. 20 that Bitget plans to acquire Thailand-based exchange GMO-Z.com Cryptonomics. The buyer is BTGT Management (Thailand), an entity in which Bitget said it holds a stake.

"Thailand holds an important position in Southeast Asia's digital-asset market, and this acquisition is a good opportunity to establish a local business base in a growing market," Bitget Chief Executive Officer Gracy Chen said.

GMO Internet disclosed on Sept. 24 that it plans to sell the business to BTGT Management, with the deal targeted to close on Oct. 31. Through its latest announcement, Bitget confirmed its involvement in the transaction. It did not disclose detailed terms, including the size of its stake in BTGT Management or the acquisition price.

GMO-Z.com Cryptonomics, the acquisition target, operates Z.com EX, an exchange launched in February 2021. The company holds a digital-asset exchange license from Thailand's Securities and Exchange Commission. Completion of the deal is subject to conditions including regulatory approval.

The acquisition announcement came about a month after Bitget disclosed the hack. On Sept. 24, the exchange said attacks on its hot-wallet and warm-wallet infrastructure resulted in losses of about $38.8 million. The attacker is known to have exploited a vulnerability in a third-party security product to carry out fraudulent withdrawal orders. Bitget previously said customer account balances were unaffected and that it completed a phased restoration of withdrawal services on Oct. 2.