South Korean lawmakers are ramping up pressure on financial regulators after cryptocurrency exchange Bithumb mistakenly deposited Bitcoins they did not own to customers.
The Financial Services Commission (FSC) failed to detect any major flaws in Bithumb’s internal systems despite at least three inspections since 2022, the Korea Times reported on Thursday, lawmakers said.
Kang Min-guk, head of the main opposition People’s Power Party, argued that the incident was more than a technical accident and pointed to structural weaknesses in the cryptocurrency market, including gaps in regulation and oversight.
Bithumb accidentally deposited 2,000 Bitcoins ($BTC) During the promotional event on February 6th, a total of 620,000 will be distributed instead of 2,000 Korean won ($1.40) per user. $BTC This means that the exchange did not actually take place.
FSC delays investigation into Bithumb, intensifying criticism
Lawmakers’ criticism of the FSC intensified as regulators delayed inspections of Bithumb. The authorities launched an investigation on February 10, with FSC officials stressing that they would take “stern legal action against actions that undermine market order.”
The investigation was originally expected to end on February 13, but authorities have extended it due to the need for additional reviews and are aiming to complete it by the end of February, local newspapers reported.
Bithumb CEO mentions two past payment incidents
FSC inspections on Bithumb include more than just 620,000 recent inspections. $BTC In addition to this error, there have been two similar incidents in the past.
Bithumb CEO Lee Jae-won said during an emergency session of the National Assembly on February 11, “There were two cases in the past where coins were paid out by mistake and then recovered, but the amount was minimal.”
From left: FSC Vice Chairman Kwon Dae-young, FSC Governor Lee Chang-jin, and Bithumb CEO Lee Jae-won during the National Assembly session on February 11th. Source: Korea Times
In the latest case, Bithumb announced that it had successfully recovered the majority of the fraudulently trusted assets, but only 125 of them. $BTC Of the $620,000 that does not exist ($8.6 million) $BTC Not collected.
Concerns about South Korea’s handling of virtual currencies: Bitcoin disappearance incident
The Bithumb incident comes as authorities face fresh embarrassment over the management and security of seized digital assets.
2021, 22 $BTC Gold coins worth about $1.5 million at current prices disappeared from a cold wallet at Seoul’s Gangnam Police Station during a nationwide audit.
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Another incident in August 2025 killed 320 people. $BTC It is reported that he disappeared from the Gwangju District Public Prosecutors Office due to a password leak. The disclosure raised eyebrows because it came amid an ongoing FSS investigation into Bithumb, although authorities only yesterday reported that the funds had been recovered in full after the hackers returned them.
Lawmakers and industry observers say the incidents highlight continuing weaknesses in authorities’ oversight and control of digital assets.
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