Bithumb’s $43B Bitcoin error sparks regulatory scrutiny

Bithumb’s $43B Bitcoin error exposed audit gaps, triggered a sell-off, and left $8.6M unrecovered, prompting calls for stricter crypto oversight in South Korea.

A major technical error at South Korean crypto exchange Bithumb on February 6 led to 620,000 BTC—worth $43 billion—being mistakenly credited to users during a promotional event. The error occurred when staff entered “BTC” instead of “KRW,” resulting in hundreds of users receiving 2,000 BTC each instead of 2,000 Korean won. This mistake triggered a panic sell-off, causing Bitcoin’s price on the platform to plummet by up to 17%. While most of the miscredited assets were recovered, 125 BTC (about $8.6 million) remain unaccounted for. Lawmakers criticized regulators for failing to detect system flaws during multiple audits since 2022 and for delaying their investigation. The incident exposed significant weaknesses in Bithumb’s internal controls, audit processes, and digital asset custody, prompting calls for stricter oversight and reforms in South Korea’s crypto market.