South Korean lawmakers have increased pressure on the financial regulators following a mistake by crypto exchange Bithumb, which credited its customers with Bitcoins it didn’t own. The error briefly caused a sell-off and raised questions regarding oversight of South Korea’s rapidly growing digital asset market.
The Korea Times reported that lawmakers said the Financial Services Commission failed to find critical faults within Bithumb’s internal system despite three inspections conducted since 2022. reported Thursday.
Kang Min Guk, a representative of the People Power Party, the principal opposition party, said that the incident went beyond a simple technical error. He cited structural weaknesses, such as gaps in oversight and regulation, in the crypto-market.
Bithumb mistakenly credited Bitcoin (2.000)BTCIn a promotion on February 6, the exchange offered 2,000 Korean Won ($1.40 per user) instead. This meant that 620,000 BTC were distributed, but they did not have any.
FSC intensifies accusations after delaying probe of Bithumb
The FSC was criticized by lawmakers for delaying its inspection in Bithumb. The regulator has delayed the inspection of Bithumb. opened the investigation on Feb. 10FSC officials have stressed that they will take action. “stern legal actions against acts that harm the market order.”
Multiple local publications have reported that the investigation, which was originally expected to end on Feb. 13 has now been prolonged. Officials are aiming to finish it by February’s end, citing an additional need for review. reported.
Bithumb’s CEO mentions two previous payout incidents
According to reports, the FSC inspection of Bithumb covers not only recent errors of 620,000 BTC but also incidents similar in the past.
“There were two previous cases in which coins were mistakenly paid out and later recovered, but the amounts were minimal,” Bithumb CEO Lee Jae Won spoke at an urgent National Assembly Session on February 11, 2019.
The latest Bithumb incident occurred. said It recovered the majority of assets miscredited, leaving only 125 BTC (8.6 millions) of the 620,000 BTC that were never there.
South Korea’s crypto handling: Concerns about the missing Bitcoin
Bithumb also comes at a time when authorities have to face a renewed scandal over the custody and safety of digital assets that they have seized.
By 2021, the current price of 22 BTC is about $1,500,000. disappeared from a cold wallet at Seoul’s Gangnam Police Station during a nationwide audit.
Related: Mirae Asset agrees to buy 92% stake in Korean exchange Korbit for $93M
Separate August 2025 cases were seen 320 BTC vanish from the Gwangju District Prosecutors’ OfficeAccording to reports, this is due to the leak of a password. The authorities only announced yesterday that they had received the password. full amount had been recovered The hacker has returned the money, which is raising eyebrows in the FSS investigation of Bithumb.
These incidents are a reminder to lawmakers and industry watchers that authorities have a persistent problem with the oversight and management of digital assets.
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Source: cointelegraph.com
