Bithumb to Report on $180M Net Loss in 2018

In 2017, Bithumb reported on a profit of 427.2 billion won ($ 375 million)
12 April 2019   297

At the end of 2018, South Korea’s largest Bitcoin exchange Bithumb suffered a net loss of 205.5 billion won (about $ 180 million). It is reported by KoreaTimes with reference to the data of the exchange's operator BTCKorea.

For comparison, in 2017, Bithumb reported on a profit of 427.2 billion won ($ 375 million)

It is noteworthy that the sales at the site increased by more than 17% compared with 2017, and the company's operating income was 256.1 billion won, which is only 3.4% less than last year.

In addition to objective reasons in the form of a bear market, such depressing figures are also associated with the June hack, as a result of which about $ 31 million were stolen from Bithumb. Half of the funds of the exchange, however, were quickly recovered.

At the end of March this year, Bithumb lost 3 million EOS and 20 million XRP as a result of a another hack. Now the company claims that all user assets are on “cold” wallets protected from cyber attacks.

In addition, in March, the exchange reported a serious staff lay off - Bithumb intends to fire 50% of its employees. And even though the company states that most of them decided to leave of their own accord, the financial figures released today say that also one of the reasons was serious losses.

Nevertheless, the company does not intend to give up and says that it continues to increase investments in foreign projects.

Note that the prolonged “cryptowinter” has affected many cryptocurrency companies. So, in the third quarter of 2018 alone, the Chinese mining giant Bitmain suffered losses amounting to about $ 500 million.

Hacked Zaif Exchange to Resume Operations

It was hacked in September last year,  about $60 million in cryptocurrency was stolen from its platform
22 April 2019   83

Japanese cryptocurrency exchange Zaif announced that it will complete the transition from the Tech Bureau to the Fisco Digital Asset Group (FDAG) on April 22 and resume normal operation the next day, Cointelegraph reportes.

In September last year, the exchange underwent a hacker attack when about $ 60 million in cryptocurrency was stolen from its platform, including Bitcoins, Bitcoin Cash and Monacoin. As part of the compensation plan to users, FDAG exchange acquired a large stake in Zaif business and transferred to the Tech Bureau over $ 44.6 million.

According to an earlier announcement of the exchange, 40% of the lost funds will be compensated to users by Fiat, and the remaining 60% - to the cryptocurrency, which will be available for withdrawal on April 23.