South Korean lawmakers are stepping up stress on monetary regulators after crypto trade Bithumb mistakenly credited clients 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) did not detect essential flaws in Bithumb’s inner programs regardless of no less than three inspections since 2022, The Korea Instances reported Thursday.
Consultant Kang Min-guk of the primary opposition Folks Energy Social gathering stated the incident is 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 ($1.4) throughout a promotional occasion on Feb. 6, distributing a complete of 620,000 BTC that the trade 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 might take “stern authorized actions in opposition to acts that hurt the market order.”
The probe, initially anticipated to conclude final Friday, has now been prolonged, with officers aiming to finish it by the top of February, citing the necessity for added 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 comparable incidents prior to now.
“There have been two earlier instances through which cash had been mistakenly paid out and later recovered, however the quantities had been minimal,” Bithumb CEO Lee Jae-won stated throughout an emergency Nationwide Meeting session on Feb. 11.
Within the newest incident, Bithumb stated it managed to recuperate 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, price round $1.5 million at present costs, disappeared from a chilly pockets at Seoul’s Gangnam Police Station throughout a nationwide audit.
Associated: Mirae Asset agrees to purchase 92% stake in Korean trade Korbit for $93M
A separate August 2025 case noticed 320 BTC vanish from the Gwangju District Prosecutors’ Workplace, reportedly as a consequence 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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