South Korea’s Bithumb exchange secures $200-million Japanese investment

South Korea’s Bithumb exchange secures $200-million Japanese investment

Major South Korean crypto exchange Bithumb has secured a sizable investment from Japan’s ST Blockchain Fund, industry website Cointelegraph has reported.

According to a report from Cointelegraph Japan, Bithumb’s parent company, Blockchain Exchange Alliance (BXA), has received $200 million in funding from the Japanese investment fund, will reportedly allow the company to expand the platform’s international presence. The investment comes as part of a Series A funding round. The report cited an April 15 press release confirming the fund’s involvement.

“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,” BXA said in the press release, as quoted by Cointelegraph.

Bithumb is one of the largest digital currency exchanges in South Korea, but the platform has suffered significant setbacks over the past year. The exchange suffered a high-profile cyber-attack in June, with some $17 million worth of digital tokens lost as a result of the heist. Bithumb’s banking partner, subsequently suspended its services to the exchange, forcing it to temporarily stop accepting new customers. The situation was resolved in late August, as Bithumb managed to regain the bank’s support.

The South Korean exchange suffered another incident last month, which resulted in some $13 million being stolen from the company. Bithumb claimed that the theft was an insider job and that the stolen crypto – EOS tokens – was owned by the company and not its customers. Last week, the company announced the results of an external audit conducted following the incident.

“We are pleased to inform you that our members’ valuable assets are managed and maintained in a systematic / safe manner through the attached due diligence report,” Bithumb said at the time.

Also last week, the company reported losses of nearly $180 million for 2018.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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