South Korean lawmakers are stepping up stress on monetary regulators after crypto change Bithumb mistakenly credited prospects with Bitcoin it didn’t maintain, an error that briefly sparked a rush to promote and renewed questions on oversight of the nation’s fast-growing digital-asset market.
Lawmakers stated the Monetary Companies Fee (FSC) didn’t detect important flaws in Bithumb’s inner techniques regardless of no less than three inspections since 2022, The Korea Instances reported Thursday.
Consultant Kang Min-guk of the principle opposition Individuals Energy Occasion stated the incident was greater than a technical mishap, claiming structural weaknesses within the crypto market, together with gaps in regulation and oversight.
Bithumb mistakenly credited 2,000 Bitcoin ($BTC) per person as a substitute of two,000 Korean received ($1.40) throughout a promotional occasion on Feb. 6, distributing a complete of 620,000 $BTC that the change didn’t truly maintain.
FSC delays probe into Bithumb, intensifying accusations
Lawmakers’ criticism of the FSC intensified because the regulator delayed its inspection of Bithumb. The authority opened the investigation on Feb. 10, with FSC officers emphasizing they’d take “stern authorized actions in opposition to acts that hurt the market order.”
The probe, initially anticipated to conclude Feb. 13, has been prolonged, with officers aiming to finish it by the tip of February, citing a necessity for extra overview, a number of native publications reported.
Bithumb CEO cites two prior payout incidents
The FSC’s inspection of Bithumb reportedly covers not solely the latest 620,000 $BTC error, but additionally two related incidents up to now.
“There have been two earlier circumstances wherein cash have been mistakenly paid out and later recovered, however the quantities have been minimal,” Bithumb CEO Lee Jae-won stated throughout an emergency Nationwide Meeting session on Feb. 11.
From left: FSC vice chairman Kwon Dae-young, FSC Governor Lee Chan-jin and Bithumb CEO Lee Jae-won throughout a Nationwide Meeting session on Feb. 11. Supply: The Korea Instances
Within the newest incident, Bithumb stated it managed to get better nearly all of miscredited belongings, with solely 125 $BTC ($8.6 million) out of the non-existent 620,000 $BTC unrecovered.
Considerations over South Korea’s dealing with of crypto: The case of the disappearing Bitcoin
The Bithumb incident additionally lands as authorities face renewed embarrassment over custody and safety of seized digital belongings.
In 2021, 22 $BTC value about $1.5 million at present costs, disappeared from a chilly pockets at Seoul’s Gangnam Police Station throughout a nationwide audit.
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A separate August 2025 case noticed 320 $BTC vanish from the Gwangju District Prosecutors’ Workplace, reportedly on account of a leaked password. Authorities solely reported yesterday that the complete quantity had been recovered after the hacker returned the funds, elevating eyebrows because the disclosure comes amid the continued FSS investigation into Bithumb.
Lawmakers and business observers say these incidents underscore persistent weaknesses in authorities’ oversight and custody of digital belongings.
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