Bithumb Announces External Audit Following $180 Million Hack and Bear Market

The bear market took its toll on every part of the crypto industry from miners to traders and several companies reported losses for that period and were forced to close down or let go of staff.

Even as the market seems to be making a steady recovery, the effects of the slump are still being felt.

One firm that has certainly seen the downsides of this Bithumb who, according to an April 11, 2019 report, saw a net loss of $180 million for 2018. The data cited by the report was from BTCKorea.com, the exchange’s operator. Ironically enough, the company actually grew by 17.5 percent in 2018 and still made a loss.

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

While this is an unfortunate event, it is not particularly surprising considering that Trading took a bit of a hit after the market slump and crypto exchanges all over the world suffered similar losses.

A Breach of Trust

Further compounding the Exchange’s problems is a hack that took place in August 2018 In which $30 million worth of Crypto was stolen. While Exchange hacks are not uncommon in crypto, this did nothing to help the exchange survive the bear market.

As if that was not enough to deal with, a loss of $13 million worth of cryptos took place last week in what is believed to have been an insider job. Fortunately, it seems that the movement of the tokens can be tracked and hopefully the perpetrator can be caught.

As soon as this breach was discovered, all funds that were stored in hot wallets were then moved to cold wallets and it has been clarified that all funds that went missing did not belong to customers but were company funds.

To get to the bottom of this, the company has hired a third party to carry it an external Audit as well as review of their asset reserves to find out just where the money went and who took it.

“We have stated that we will conduct fair and objective due diligence on all assets that we have through a reliable external Audit,” the statement reads,“We are pleased to inform you that our members' valuable assets are managed and maintained in a systematic / safe manner through the attached due diligence report.”

It is remarkable, however, that the firm has held strong in the face of all these challenges.

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