Bithumb Risk Warning | Multiple Hacking Attacks and Financial Investigations: Is the Established Korean Exchange Safe?

2 weeks before

Summary：Is Bithumb reliable? As one of South Korea's largest cryptocurrency exchanges, Bithumb has suffered multiple hacker attacks over the past few years, resulting in losses exceeding $200 million. As of 2025, the exchange remains mired in crisis due to a lack of financial transparency and regulatory investigations. This article comprehensively analyzes Bithumb's risk history, compliance challenges, and investor concerns to help determine its safety.

1. Platform Background and Market Position

Platform full name : Bithumb Korea Co., Ltd.
Founded : 2014
Headquarters : Seoul, South Korea
Official website : https://www.bithumb.com
Market status : One of the four largest exchanges in South Korea, alongside Upbit, Coinone, and Korbit.

2. Historical Hacking Incidents

2017 : First hacked, resulting in losses of approximately $70 million.
2018 : Suffered two attacks, resulting in losses exceeding US$50 million.
2019–2020 : Abnormal capital outflows occurred again, with cumulative losses approaching US$100 million.
Overall cumulative : more than $200 million in assets were stolen , making it one of the most hacked exchanges in Asia.

👉 Reference: Reuters

III. Recent Risks and Regulatory Investigations

South Korean financial authorities : Bithumb's financial situation will continue to be investigated in 2024-2025, suspecting tax evasion and financial opacity .
Executive Cases : Several former CEOs were accused of misappropriation of funds and market manipulation.
Potential acquisition : There have been many rumors of acquisition by major Korean chaebols or overseas capital, but nothing has materialized.

IV. Investor Feedback and Market Trust

Withdrawal delays : Some users reported that large withdrawals require manual review, which takes a long time.
Declining market confidence : South Korean local investors gradually turned to Upbit , causing Bithumb's market share to continue to shrink.
Lack of international influence : Except for South Korea, Bithumb has almost no presence in the global market.

V. In-depth analysis of risks

Security risks : Repeated hacking indicates that its IT security protection is insufficient.
Management chaos : The company's governance structure changes frequently, resulting in poor internal stability.
Compliance pressure : As South Korea's financial regulations tighten, the biggest question is whether Bithumb can maintain its license.

VI. Risk Warning and Investment Advice

Risk Points	Investor Implications
Multiple hacker attacks	There is a serious lack of security and the risk of asset custody is extremely high.
Regulatory investigations	Financial transparency and allegations of tax evasion have put the platform in an uncertain position.
Governance chaos	Frequent changes in senior management affect market trust.
Declining market share	Loss of investor confidence could further weaken liquidity.

Investment advice :

Avoid storing large amounts of funds in Bithumb for a long time;
For Korean users, please give priority to more stable platforms such as Upbit;
International investors should be cautious and are advised to switch to international compliant exchanges regulated by FCA, ASIC, and CySEC;
Use cold wallets to store primary funds to reduce platform risks.

VII. Conclusion

Although Bithumb remains an important player in the Korean crypto market, its frequent hacking incidents, regulatory investigations, and loss of market trust have put it on the brink of high risk.

⚠️Final conclusion : Bithumb has a high risk level and potential for collapse, and is not recommended as a long-term fund custody platform.

⚠️Risk Warning and Disclaimer

BrokerHivex is a financial media platform that displays information sourced from the public internet or uploaded by users. BrokerHivex does not endorse any trading platform or instrument. We are not responsible for any trading disputes or losses arising from the use of this information. Please note that the information displayed on the platform may be delayed, and users should independently verify its accuracy.