One of the leading cryptocurrency exchanges in the world, South Korean crypto exchange Bithumb has accrued a loss of nearly 205 billion won ($180 million) in 2018, which was a dreadful year for the crypto community, according to a report by The Korea Times on Thursday.
The 2018 figures are a complete turnaround from the euphoric figures of 2017 when the exchange made a net profit of 427.2 billion won. According to its operator BTCKorea.com, the main reason for the dramatic fall in fortunes has been the plight of cryptocurrencies in 2018. It also added that the exchange endured extensive losses despite sales growing by 17.5% compared to 2017.
Bithumb is not the only one to report losses in the crypto space. Crypto mining giant Bitmain and hardware manufacturer Nvidia also reported shaky performance due to the bearish market last year.
Things have not been moving smoothly for the South Korean giant. In August last year, the exchange saw a security breach which resulted in the loss of funds worth 35 billion won ($30 million), and last month in another case of security breach, the exchange lost three million EOS ($13 million) and according to the exchange, it was compromised by its own employees.
In another important development on Thursday, Bithumb announced that it has conducted a professional external audit of its funds after the hack last month. This news was made public by the exchange in a statement.
Reiterating the fact that customer funds remain safe in cold wallets, Bithumb has used a third party to assess its reserves. The statement goes on to add:
“We have stated that we will conduct fair and objective due diligence on all assets that we have through a reliable external Audit.”
It further notes:
“We are pleased to inform you that our members’ valuable assets are managed and maintained in a systematic and safe manner through the attached due diligence report.”