Market News

South Korea Launches Investigation into Bithumb's $43 Billion Bitcoin Misstep

On February 10, 2026, South Korea’s Financial Supervisory Service (FSS) announced a thorough investigation into Bithumb after a significant error led to the accidental distribution of 620,000 Bitcoin.

This incident, valued at approximately $43 billion, occurred when an employee mistakenly entered "BTC" instead of "Korean won" for a promotional event.

Consequently, the exchange distributed coins it did not own, resulting in a massive disruption to the market and a 15% price drop as users rushed to sell the erroneously received Bitcoin.

Regulators discovered that the so-called "ghost coins" did not represent actual assets on the blockchain, as Bithumb only held around 46,000 Bitcoin at that time.

In response to the situation, Bithumb promptly froze 695 accounts and halted withdrawals, successfully recovering 99.7% of the misplaced funds, though 125 Bitcoin remain unaccounted for.

To restore trust, the exchange has committed to compensating affected users with an additional 10% on their losses and is establishing a $68 million protection fund.

This event has prompted lawmakers to consider new regulations aimed at preventing similar operational failures in the future.

Proposed measures include limiting ownership stakes in exchanges to prevent concentrated control and instituting a dual-approval system for large transactions.

As regulators intensify their oversight, this incident marks a critical turning point in South Korea’s approach to cryptocurrency governance, showcasing a shift from passive monitoring to active intervention.

The need for robust regulatory frameworks is now more pressing than ever as South Korea aims to safeguard its burgeoning digital economy.