20th February 2026 – (Seoul) South Korean lawmakers have urged stricter oversight of the country’s cryptocurrency market following a major accounting error at exchange Bithumb that saw users mistakenly credited with vast quantities of Bitcoin.
The incident occurred on 6 February during a promotional campaign, when customers were erroneously allocated 2,000 Bitcoin each instead of the intended reward of 2,000 won (approximately $1.40). In total, around 620,000 Bitcoin were incorrectly credited to user accounts despite not being held by the platform.
Bithumb said it had successfully retrieved most of the misallocated assets, with 125 Bitcoin — valued at approximately $8.6 million — still outstanding. The error briefly triggered a surge in attempted withdrawals and sales, raising concerns over operational controls at one of the country’s largest exchanges.
South Korea’s Financial Services Commission (FSC) launched a formal investigation on 10th February, warning that it would pursue firm action against conduct that disrupts market order. Although the inquiry had initially been expected to conclude by mid‑February, regulators have extended it to the end of the month to allow for further examination.
According to local reports, the FSC has carried out at least three inspections of Bithumb since 2022. Representative Kang Min‑guk of the ruling People Power Party said the latest episode highlighted deeper regulatory weaknesses rather than a simple technical failure.
Bithumb chief executive Lee Jae‑won appeared before the National Assembly at an emergency session on 11th February, revealing that two smaller payout errors had occurred previously, though the amounts involved were limited and later recovered. The current FSC investigation encompasses all three cases.
The controversy has also renewed scrutiny of digital asset custody practices in South Korea. In 2021, 22 Bitcoin disappeared from a cold wallet held at a Seoul police station during a nationwide audit. More recently, in August 2025, 320 Bitcoin went missing from the Gwangju District Prosecutors’ Office after a password leak, although authorities have since confirmed the funds were recovered.
