Bithumb suffers net loss of over 200 billion won last year

Plunge of cryptocurrency prices blamed

Cryptocurrency exchange Bithumb went into deficit last year suffering a net loss of 205.4 billion won, hurt by the broad-based plunge of cryptocurrencies.

BTC Korea.com, the operator of Bithumb, announced Thursday that the crypto exchange posted sales of 391.7 billion won and an operating profit of 256.1 billion won last year.

Bithumb’s sales in 2018 were up 17.5% from the preceding year but operating income dropped 3.4%. Most notable is that Bithumb suffered a net loss of 205.4 billion won last year because of non-current factors such as the decline of cryptocurrencies. This represents a dramatic reversal compared with 2017 when Bithumb posted a net profit of 534.9 billion won.

“Despite the shrinking cryptocurrency market, Bithumb remains strong firmly thanks to its differentiated services and global market power. We will do our utmost to improve and protect members’ asset value,” a BTC Korea.com official said.

Meanwhile, BTC Korea.com also disclosed the outside accounting firm BDO Korea’s due diligence results of Bithumb’s savings and cryptocurrency holdings. The company said it had confirmed that all the assets of Bithumb members were preserved safely. At the same time, passbooks for members’ deposits and Bithumb’s accounts for operating funds are managed separately and there are no transactions between the two accounts.

by Janice Yunji Kim/ yjk@decenter.kr
Originally published at : decenter.kr