Bithumb’s Hack Didn’t Stop the Crypto Exchange from Making $35 Million in 6 Months
$35 Million Goes to Hacked Crypto Exchange Bithumb
Nearly $40 million in profits was made by Bithumb, the South Korean cryptocurrency exchange in the first half of 2018. Gains were an excellent relief for the recently hacked company. Data on the exchange’s holdings are available from Vidente, a partial owner of the company who provided the numbers to a South Korean cryptocurrency regulator.
Apparently, before net profits for the company are around $270 million with about $194 million of that taken as profits by the company following deductions. Considering the profits are only from the first half of 2018, it would seem to be a nice profit margin – but considering it’s low compared to 2017 – the company is still suffering in lost revenue.
Bithumb reportedly brought home roughly $380 million in profits in 2017, which is over ten times the ROI of what’s happened so far in 2018. As for the theft which occurred earlier this year, an investigation is ongoing into the theft of more than $31 million in cryptocurrencies. They claim to have found around $14 million of the stolen cryptocurrency that was taken, but there have been negative repercussions from the fraud.
Another investigation is rumored to have occurred as well for potential tax fraud somewhere around $30 million – although no charges were made – and the investigation is said to be over. Whatever has happened in the past doesn’t matter, the company is taking a noticeable plunge in profits.
Bithumb is suffering from severe losses in trade volume. A decrease of over $100 million has occurred in just a week – also reported to be related to the cyber-attack – but no one knows for sure. In any case, Bithumb has suffered high losses, and it’s likely more is to come. Bithumb is just one of many exchanges who has seen a plummet in trade volume this year.
What other crypto trade platforms can you think of who have taken heavy losses this year? Tell us in the comment section below.