Seoul-based crypto exchange Bithumb posted impressive results in 2024, booking $110 million in net profit. A cryptocurrency boom and increasing U.S. institutional demand led to Bithumb's significant turnaround.
Financial Successes
According to local media reports, the company's profits jumped by 560% year-over-year, with revenues nearly tripling. This marks a significant comeback for one of South Korea’s most scrutinized crypto platforms.
History of Challenges and Resolutions
Bithumb faced many challenges, including hacks, legal issues, and increased regulatory scrutiny. In 2018, it suffered a major breach resulting in $31.6 million loss, prompting a temporary suspension of operations. Another incident in the following year saw $20 million worth of EOS and XRP tokens stolen. In 2020, South Korean authorities raided Bithumb's offices over alleged tax evasion and financial misconduct linked to former chairman Lee Jung-Hoon. Nevertheless, the exchange is working to restore its reputation, including partnering with Kookmin Bank under new regulatory requirements.
Future Plans and Competition
Currently, Bithumb is South Korea’s second-largest crypto exchange and plans to go public on Nasdaq in 2025, potentially making it one of the few Asian crypto firms to debut on a major U.S. exchange. Main domestic rival, Upbit, also reports strong results with $809 million in operating profits for 2024.
Bithumb has managed to overcome past challenges to achieve significant financial success, highlighting its strategic move to strengthen its global market position.
