Bithumb to Promise Full Compensation to Investors

As reported, the amount could be decreased after various recovery efforts
21 June 2018   946

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 Acquisition Deal May Collapse

The deal was originally supposed to close in Feb 2019, but the purchaser was able to pay only initial payment and the deal was postponed for 2 times
30 September 2019   108

The deal to sell the largest South Korean exchange Bithumb runs the risk of falling apart a year after its conclusion, reports Korea Herald, citing its own sources.

An agreement on the sale of a controlling stake in Bithumb was concluded between BTC Korea Holdings, the exchange operator, and the Singapore consortium BK Global in October 2018. Under its terms, BTC Korea Holdings, which owns 76% in Bithumb, sold 50% + 1 share of the company from Singapore for 400 billion won ($ 333 million).

The deal was originally supposed to close in February 2019. According to the Korean publication, BK Group only made an advance payment of 100 million won, and the deadline for paying the remaining amount was postponed twice.

In April, a deferment was granted, provided that the BK Group increased its stake from 50% to 70%, the Korea Herald said.

In July, Dual Industrial announced a decision to buy a 57.41% stake in BK Group for 235.7 billion won, which looked like an attempt by a Singapore company to finance a Bithumb deal. But later, Dual declined the deal.

But, according to the media, Bithumb team isn't said.

Bithumb has stable management, so there won’t be any impact should the deal collapse.

Bithumb Anonymous Representative

According to the Korea Herald, in September BK Group found a new private investor. He became the owner of the company that owns the largest stake in the Korean company Cornerstone Networks.