South Korean financial authorities are facing mounting political pressure after crypto exchange Bithumb mistakenly credited users with bitcoin it did not hold, briefly triggering market disruption and renewed scrutiny of regulatory oversight.
During a promotional event on Feb. 6, Bithumb erroneously credited 2,000 BTC to each eligible user instead of 2,000 Korean won (approximately $1.40). In total, 620,000 BTC were reflected in customer accounts despite not existing on the platform’s balance sheet. At current market prices near $67,900 per Bitcoin, the miscredited amount represented roughly $43 billion.
Lawmakers criticized the Financial Services Commission (FSC), arguing the regulator failed to identify systemic weaknesses despite conducting multiple inspections of the exchange since 2022.
FSC Investigation Delayed Amid Oversight Concerns
The FSC launched a formal probe on Feb. 10 but extended its review beyond the initial deadline, citing the need for additional examination. Officials have pledged strict legal action if violations are confirmed.
Bithumb CEO Lee Jae won acknowledged two prior minor payout errors in recent years. In the latest case, the exchange reported recovering all but 125 BTC, valued at approximately $8.6 million.
Broader Questions Over Crypto Custody in South Korea
The controversy follows earlier incidents involving missing seized digital assets from public institutions, further intensifying debate over custody standards and regulatory preparedness in South Korea’s rapidly expanding crypto market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.