South Korean lawmakers are stepping up strain 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 mentioned the Monetary Providers Fee (FSC) didn’t detect essential flaws in Bithumb’s inside techniques regardless of at the very least three inspections since 2022, The Korea Occasions reported Thursday.
Consultant Kang Min-guk of the primary opposition Folks Energy Occasion mentioned 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 an alternative 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 really 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 might take “stern authorized actions towards 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 assessment, a number of native publications reported.
Bithumb CEO cites two prior payout incidents
The FSC’s inspection of Bithumb reportedly covers not solely the current 620,000 BTC error, but additionally two related incidents previously.
“There have been two earlier instances by which cash have been mistakenly paid out and later recovered, however the quantities have been minimal,” Bithumb CEO Lee Jae-won mentioned throughout an emergency Nationwide Meeting session on Feb. 11.
Within the newest incident, Bithumb mentioned it managed to get better the vast majority of miscredited belongings, with solely 125 BTC ($8.6 million) out of the non-existent 620,000 BTC unrecovered.
Issues 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 total quantity had been recovered after the hacker returned the funds, elevating eyebrows because the disclosure comes amid the continuing FSS investigation into Bithumb.
Lawmakers and trade observers say these incidents underscore persistent weaknesses in authorities’ oversight and custody of digital belongings.
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