Bithumb, South Korea’s largest crypto exchange, could not avoid the wrath of so-called “crypto winter” as the company posted a net loss of 205.5 billion won (around $180 million) in 2018.
Reported by Korea Times on April 11, the figures were published by Bithumb’s parent organization BTCKorea.com. The present figure has created a stir in the market as, a year ago, the crypto exchange recorded a net profit of 427.2 billion won (approximately $375 million).
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A double-digit increase in sales
Despite the recorded loss, the exchange saw a 17.5 percent increase in sales, touching 391 billion won (around $343 million). The primary reason behind the financial loss is the year-long bear in the digital asset market, Korea Times said.
The exchange, however, is continuously pushing to expand its offerings and is eying to make a mark on the global map. “In terms of sales, we saw a 17 percent increase, and we continue to increase overseas investments,” an exchange official told Korea Times.
The South Korean exchange is not the only one whose rising profits turned into losses in recent months, as we saw the same trend for major crypto companies, including Bitmain.
Last month, reports surfaced that the crypto exchange has laid off over 150 employees – almost 50 percent of its workforce – amid financial struggles.
Still a vulnerable exchange?
Bithumb is South Korea’s largest crypto exchange in terms of executed trade values. Since its inception, the exchange was attacked twice by cybercriminals and lost millions in funds. Earlier this month, the exchange reported the most recent attack, which resulted in the theft of an estimated $19 million. The exchange suspects the attack to be an “accident involving insiders.”
Addressing the issue, the exchange’s parent company also assured that customers’ funds had been transferred to cold wallets.