One of the largest cryptocurrency exchanges from South Korea suffered a massive loss within a year. After experiencing the tough year of Hack, Bithumb reports $175 Million in Losses.
Whenever any crypto exchange experiences loss or hack incident, it puts millions of funds in the riskier zone which creates insecurity among other crypto enthusiasts towards their respective exchanges. As such, the vague scene of Cryptopia, QuadrigaCX, Bithumb, and other such exchanges bring a sense of insecurity among millions of those who believe in the future of cryptocurrency.
Per the Korean media, following last month’s hack, Bithumb exchange conducted the professional external audit of its funds. According to official sources, the company had lost around 205.5 billion won in 2018 which is almost $175 million. These figures were published by BTCKorea.com, the parent organization of Bithumb exchange on April 11, 2019.
It says that the attacker stole 35 billion won and early in 2019, the company had laid off 30 employees from its total staff of 340 people citing the massive decline in the price of Bitcoin since late 2017.
It’s worth to note that the firm earlier in 2017 earned a profit of more than $350 million. Moreover, despite substantial price decline in 2018, the firm’s representative said that ‘the company is performing solid’. In his words;
“even during a phase in which the cryptocurrency market is struggling, Bithumb is sustaining a solid business with unique services and global market dominance. Bithumb will put in all efforts in protecting user funds.”
Nevertheless, the firm says that they are looking for more potential in the near future and thus expanding their offerings. It says that;
“In terms of sales, we saw a 17 percent increase, and we continue to increase overseas investments,”
Although exchange has officially shared the figure the awful story of hack and fake volume metrics reports remains on the web. Bithumb wasn’t the only trading platform which had a tough time in the industry – history had the record of many such exchanges.
What do you think about hack movement and record loss Bithumb has had? Share your thoughts with us.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com