Bithumb Crypto Exchange to Expand International Activities After Raising $200 Million Funding

News and Analysis

Bithumb, one of the biggest Bitcoin exchanges in South Korea, has secured a whopping $200 million in a Series A funding round from the Japan-based ST Blockchain Fund.

As per report by Cointelegraph, the funds will be deployed towards expanding international activities and possible addition of new trading pairs.

“The fund shared our vision of creating a global digital exchange platform that can efficiently transfer value across borders with lower costs, which was the key rationale behind this investment decision,” Blockchain Exchange Alliance (BXA), Bithumb’s parent company, said in the press release.

ST Blockchain Fund is based in Japan, but features participation from investors throughout the world, including Europe and the United States.

The move comes in the wake of upheaval at Bithumb, which suffered losses of around $13 million in the EOS cryptocurrency and about $6.2 million in XRP late last month in what executives suggested was an insider operation to defraud the company.

The company subsequently released results of a third-party public audit, reassuring investors their funds were in suitably secure storage.

Prior to that, in 2018, a much larger hack had seen Bithumb lose what initially appeared to be around $30 million, the figure subsequently being reduced to $17 million.

Last week, the company posted a net loss of 205.5 billion won ($180 million) for 2018.

The news about the funding shows that even though Bithumb has suffered from multiple hacks, investors keep faith in the exchange. Despite all the above mentioned issues, Bithumb seems to enjoy a positive reputation. This might be due to the fact that Bithumb has been consistently sticking to the policy of reimbursing its customers.

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