Upbit and Bithumb show contrast in profit, with a gap of almost $60 million in the 3rd quarter

Recently, there has been a huge decline in the trading volume of the cryptocurrency space that has made the markets bearish. Despite this, Upbit, the biggest cryptocurrency exchange platform of South Korea has reportedly gained a profit of $100 million in the 3rd quarter of 2018.

According to the media outlet Yonhap, who extracted the data collected and shared by the Repository of Korea’s Corporate Filings [DART], revealed that Upbit’s profit of $100 million against the profit equivalent to $39 million, obtained by the next-largest cryptocurrency exchange Bithumb.

In 2017, the annual profit report of Bithumb officially revealed its profits to be at $400 million. This year has been a huge downfall for the platform as the profits have taken a hit of about $359 million.

While the bear continues to show up in the cryptocurrency market, Bithumb has its own reasons for the solid decline in profits. About two months ago, the second-largest South Korean cryptocurrency trading platform was hacked and endured a loss of about $17 million in Bitcoin, Bitcoin Cash, Ripple, Ethereum, among other cryptocurrencies. This put a hault on the operations of Bithumb for a month.

The case of Upbit is entirely in contrast with Bithumb. The former has been accounted with net corporate holdings worth $1.2 billion, out of which, $100 million were added in just a time span of two months.

Earlier this year, Upbit found itself in the middle of a legal controversy wherein its offices in South Korea were raided by the Korean authorities. The action was taken as the authorities whiffed fraudulent activities involved in the company’s operations. Upbit was allegedly accused of moving the funds of its customers to a different account, said to be that of an executive of the platform.

Post the raid, Upbit managed to clear its name and came out clean in a financial audit. This clearly stated that Upbit was in line with the records put on its balance sheets and held 100% of the Bitcoin and other cryptocurrencies as claimed on the sheets.