Korea’s first cryptocurrency exchange Korbit has liquidated its U.S. subsidiary KORBIT USA, INC., blaming its worse-than-expected business performances for the insolvency.
Korea’s PC and mobile game giant Nexon Inc. a majority shareholder of Korbit, said in the auditing report on the consolidated financial performances for fiscal 2018 that it had liquidated the U.S subsidiary.
The company blamed the liquidation on the U.S. subsidiary’s poor financial performances, which were victimized by falling cryptocurrency prices as well as shortfalls in trading volumes.
Yet, some market analysts said the liquidation in part has something to do with Nexon’s acquisition of European cryptocurrency exchange Bitstamp, as Bitstamp secured the BitLicense from New York Department of Financial Services (NYDFS) in April to trade cryptocurrencies in the state of New York, becoming the 19th cryptocurrency exchange to be granted the BitLicense.
Nexon is known to own a 80% stake in Bitstamp in the name of Nexon chairman Kim Jung Ju and his wife. Nexon acquired 125,000 shares of Korbit in September, 2017 for 91.25 billion won, becoming the majority shareholder.