Bithumb has asked a court for an asset freeze to reclaim the remaining 7 BTC mistakenly paid out in February. The South Korean exchange is turning to legal action after internal recovery efforts failed to secure the funds.
South Korean authorities fined Bithumb about $24 million and issued a six-month partial ban after finding roughly 6.65 million violations tied to KYC and transaction-restriction controls. The penalty highlights intensifying regulatory scrutiny of crypto platforms.
Local media report South Korean authorities have proposed a six-month suspension of virtual asset transfers for newly registered Bithumb users over alleged AML violations, while existing customers would remain unaffected.
South Korea’s National Assembly confronted Bithumb CEO Lee Jae-won after the exchange accidentally attempted to transfer 620,000 BTC—about $40 billion and more than 12 times its actual holdings—raising urgent questions about controls and oversight.
A reported $40 billion error at Bithumb highlights systemic vulnerabilities in large centralized exchanges and risks to liquidity and user funds. The incident has renewed calls for stronger oversight and improved operational safeguards.
South Korea's top financial regulator said Monday that Bithumb accidentally distributed over $40 billion in bitcoin to customers, highlighting operational gaps in the crypto market and the need for tougher oversight.
South Korea’s Fair Trade Commission carried out an on-site investigation at Bithumb’s headquarters to examine advertisements and promotional materials tied to liquidity claims. The probe looks at whether marketing misled consumers about order-book depth and trade execution conditions.
The Financial Services Commission has proposed new governance rules forcing Upbit, Bithumb, Coinone and Korbit to cut major owners' stakes to 15–20%, aiming to reduce concentration and conflicts of interest.
Bithumb will close its USDT market and end a shared order book with Australia’s Stellar Exchange after just two months as regulators scrutinize its anti–money laundering controls. The move follows an ongoing probe by South Korean authorities.