Bithumb Rebounds With Big Gains, Plans U.S. IPO After Wild Past

Seoul-based crypto exchange Bithumb posted a dramatic turnaround in 2024, booking $110 million in net profit as a bull run in digital assets and rising U.S. institutional demand pushed Bitcoin to record highs.

According to local media reports, the company’s profits jumped by 560% year-over-year, while revenue nearly tripled in a comeback for one of South Korea’s most scrutinized crypto platforms.

The profit boost follows a rocky history marked by hacks, legal challenges, and regulatory scrutiny. In 2018, Bithumb suffered a $31.6 million security breach, forcing the exchange to temporarily halt deposits and withdrawals. Less than a year later, another exploit drained $20 million worth of EOS and XRP tokens. That same year, CoinMarketCap briefly delisted Bithumb over allegations of wash trading, accusing the platform of inflating up to 94% of its reported trading volume.

The exchange’s troubles didn’t stop there. In 2020, Bithumb offices were raided by South Korean authorities investigating alleged tax evasion and financial misconduct involving former chairman Lee Jung-Hoon. This January, two individuals were charged with manipulating the activity of Fusionist (ACE) tokens on the exchange, netting $5 million in profit through what prosecutors claim was artificial pumping.

Despite this checkered past, Bithumb has taken steps to restore its image. A long-running effort to secure reliable banking partnerships bore fruit this month with a deal finalized with Kookmin Bank, one of South Korea’s largest commercial banks. The move follows new regulatory requirements in the country mandating real-name bank accounts and closer financial oversight of crypto trading.

Bithumb, currently South Korea’s second-largest crypto exchange, is also looking to build on its momentum with an ambitious plan to go public in 2025. The company is reportedly targeting a listing on Nasdaq to become one of the few Asian crypto firms to debut on a major U.S. exchange.

Its main domestic rival, Upbit, has also ridden the bullish wave. The parent company behind Upbit recently reported a $809 million operating profit and $671 million in net earnings for 2024.