Bithumb to Promise Full Compensation to Investors

As reported, the amount could be decreased after various recovery efforts
21 June 2018   1104

Today Bithumb has officially confirmed that it lost $ 30 million as a result of a hacker attack, and its security team intends to initiate a process of reimbursement, CCN reports.

After the incident occured on June 20, Bithumb quickly followed the procedure to immediately report [the] incident to KISA announcing that about 35 billion Korean Won worth amount of cryptocurrency was stolen. However, as we undergo recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence, we expect that the overall damage will be less than the amount we initially expected.
 

Bithumb Team

The initial value of $ 30 million was consistent with the estimated amount of stolen funds, but already at the first stages of the investigation, conducted jointly with KISA, Bithumb employees found that they can recover some of the losses.

As the example of Bithumb showed, even such sites are not protected from hack, despite the fact that they devote a significant part of their budget to the security. However, in this case, the victims of the hacker attack will be fully compensated for all the losses, which does not always happen on smaller sites.

Bithumb has been administering company’s asset and customers’ asset, and all customers cryptocurrencies, as well as KRW asset, are safely stored on cold wallet and bank respectively. Moreover, we would like to ensure that Bithumb currently has about 500 billion KRW worth of company’s fund. The amount of damage that occured this time will be fully covered by Bithumb’s own company fund.
 

Bithumb Team

At the end of 2017 Bithumb had more than $ 1 billion in cryptocurrencies, and its net profit for the past year was about $ 300 million. On June 21, Bithumb reported that it currently has about $ 450 million of its own funds and can freely pay investors their money as soon as the investigation will be completed. 

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   221

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.