Hacked Crypto Exchange Bithumb Made $35 Million Profit in First Half 2018

Bithumb-on-phone
23 August 2018

South Korean cryptocurrency exchange Bithumb made net profits of 39.34 billion won (about $35 million) in the first half of this year, despite a rough June for the firm.

Vidente, a video equipment maker that owns 10.55 percent of Bithumb and 10 percent of its holding company, revealed the financial data to a South Korean financial regulator on Thursday, according to local news agency Yonhap.

Before deductions, the filings state, Bithumb collected a total of $270 million in revenue within the first six months of 2018, with $194 million in operating profits.

While the data for the same period last year is not available, Yonhap said Bithumb made $380 million in net profits in 2017 alone, more than 10 times its half-year profits so far.

It’s been a rocky summer for Bithumb so far. The platform suffered a major breach in June that saw around $31 million in cryptocurrencies stolen – though it later claimed to have clawed back $14 million. It’s not clear if that event has affected the disclosed first-half figures significantly or if the costs will be pushed to a later accounting period.

An investigation into possible tax evasion launched in January also saw the company receive a hefty bill of around $28 million as it concluded, also in June – although no wrongdoing was found.

Data from CoinMarketCap indicates the 24-hour trading volume on Bithumb, once the world’s largest cryptocurrency exchange, has taken a significant plunge this year.

For instance, on Jan. 2, Bithumb was the world’s third-largest trading venue with $2.5 billion in 24-hour trading volume. It has now dropped to the 19th, with around $71.7 million changing hands in the past trading day.

CoinDesk also reported early this month that the 24-hour trading volume on Bithumb dropped by 40 percent from $350 million to $250 million within a week after it suspended the opening of new customer accounts due to a banking restriction – an issue also related to the hack.

In similar news, Dunamu, the software developer that owns the Upbit exchange, has also just disclosed its latest financial data. According to the report, Upbit netted $97 million in profit during the first half of 2018.

Bithumb image via Shutterstock