Fisco cryptocurrency exchange (FCCE) has completed the acquisition process of Zaif cryptocurrency exchange’s business operations.
Zaif was a licensed exchanged operated by Tech Bureau and had undergone some major shifts in ownership favoring Fisco exchange’s bailout funds leading to the acquisition. The process began in October.
The acquisition was initiated due to a lack of sufficient funds in Zaif’s asset reserve following a hack that took place in September, where USD 60 million worth of cryptocurrencies were stolen from its hot wallet. To offset this debt, in an agreement, Zaif reached out to Japan-listed firm called Fisco to receive a USD 44.5 million investment in exchange for a major share of ownership. However, this bailout has turned out to be a buyout event.
Tech Bureau has now officially handed over the proceedings of the exchange and FCCE will begin assumption of responsibilities with compensation proceedings to begin at the end of the month.
For Tech Bureau, plans to dissolve the company and retire from cryptocurrency industry for good have been set. This was revealed in a statement provided to the press, where the company said, “We will abolish the registration of our virtual currency exchange and plan to dissolve.”
No information regarding the resumption of trading activities on the Zaif exchange has been provided yet.
So far this year, more than ten cryptocurrency related acquisitions have occurred. While cryptocurrency mergers and acquisitions (M&A) has trended this year, most have been attributed to greater exposure of Bitcoin and blockchain enterprise. Unfortunately, in this case, the inability for Tech Bureau to offset the debts due to the hack has been the cause of this acquisition.
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