Bithumb Losses Totalled $180 Million in 2018 Bear Market, Company Reports

Bithumb confirmed that troubling market conditions spurred the losses, which come despite 17% sales growth.
Bithumb confirmed that troubling market conditions spurred the losses, which come despite 17% sales growth.

South Korean cryptocurrency exchange Bithumb had a net loss of 205 billion won ($180 million) in 2018 due to the Bitcoin (BTC) bear market, local English-language daily news outlet Korea Times reported on April 11.

Citing data from the exchange’s operator, BTCKorea.com, the publication revealed Bithumb, South Korea’s largest exchange, endured the extensive losses despite sales growing 17.5% compared to 2017.

“In terms of sales, we saw a 17% increase, and we continue to increase overseas investments,” a spokesman added in private comments.

Bithumb’s performance falls in line with other similar losses in the cryptocurrency industry, which accepted the growing pains as Bitcoin maintained its now record bear market throughout last year.

As Cointelegraph reported, other companies in the space, such as mining giant Bitmain and hardware manufacturer Nvidia, also reported shaky performance due to market conditions.

In August, Bithumb’s troubles were compounded when a security breach resulted in the loss of funds worth 35 billion won ($30 million), while last month saw another 14 billion won ($12 million) disappear in an alleged insider job. At the same time, Bithumb announced a series of major staff cuts.

The platform formally confirmed it was conducting an external audit Thursday, reassuring users its funds were being kept in cold storage wallets and that the recent losses were confined to the currency owned by the exchange.