South Korea’s financial regulators are under fire for their inability to detect significant shortcomings in Bithumb’s operations, which culminated in a historic Bitcoin blunder. Despite multiple inspections by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), a critical vulnerability persisted, enabling a single employee to execute substantial coin transfers without oversight. According to Rep. Kang Min-guk of the People Power Party, the FSC conducted one review of Bithumb in 2022 and two in 2025, while the FSS carried out three inspections during the same timeframe. Yet, none of these assessments uncovered discrepancies between the exchange’s actual holdings and its accounting records. On February 6, a promotional mishap led to users erroneously receiving 2,000 BTC each instead of the intended coins worth 2,000 won (approximately $1.38). This error resulted in the system erroneously recording the distribution of 620,000 bitcoins to users, far exceeding Bithumb’s genuine holdings of around 42,800 BTC. As reported by The Korea Times, lawmakers have indicated that this incident highlights fundamental weaknesses in internal controls, ledger management, and regulatory oversight. Rep. Han Chang-min of the Social Democratic Party questioned whether the inspections were primarily procedure-driven and remarked on the attempts to assign blame to Bithumb. The FSS has extended its investigation into February to examine possible violations related to investor protection, anti-money laundering (AML), and systemic flaws. Bithumb CEO Lee Jae-won admitted to two earlier minor errors that were rectified, which the FSS will also be evaluating. Meanwhile, a designated emergency task force from the authorities and the Digital Asset eXchange Alliance (DAXA) is currently assessing asset verification and internal control measures at other major exchanges in the country, including Upbit, Coinone, Korbit, and GOPAX. The findings are anticipated to shape DAXA\u2019s self-regulatory policies and upcoming cryptocurrency legislation. Additionally, this misstep follows a recent incident where the Gwangju District Prosecutors\u2019 Office reported missing Bitcoin that had been seized in a criminal case. Fortunately, authorities have since recovered all 40 billion won worth of the lost cryptocurrency. Prosecutors revealed that the 320.8 bitcoins were returned from the hacker’s digital wallet to their office’s wallet on February 17 after the hacker was unable to cash them out. These coins were originally confiscated from the daughter of individuals arrested for running an illegal gambling operation valued at 390 billion won from 2018 to 2021, who had converted their illicit gains into Bitcoin. Officials noted that these BTC were lost last August when prosecutors accidentally accessed a phishing site while reviewing the wallet, which exposed the funds. Authorities continue to track the hacker and monitor both domestic and international exchanges to prevent additional losses.<\/p>\n","protected":false},"excerpt":{"rendered":"
South Korea’s financial regulators are under fire for their inability to detect significant shortcomings in Bithumb’s operations, which culminated in a historic Bitcoin blunder. Despite multiple inspections by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), a critical vulnerability persisted, enabling a single employee to execute substantial coin transfers without oversight. According […]<\/p>\n","protected":false},"author":2,"featured_media":5866,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[],"class_list":["post-5867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-1"],"translation":{"provider":"WPGlobus","version":"3.0.0","language":"vi","enabled_languages":["en","de","ja","vi","ms"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"de":{"title":false,"content":false,"excerpt":false},"ja":{"title":false,"content":false,"excerpt":false},"vi":{"title":false,"content":false,"excerpt":false},"ms":{"title":false,"content":false,"excerpt":false}}},"rttpg_featured_image_url":{"full":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9.png",1024,1024,false],"landscape":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9.png",1024,1024,false],"portraits":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9.png",1024,1024,false],"thumbnail":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9-150x150.png",150,150,true],"medium":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9-300x300.png",300,300,true],"large":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9.png",1024,1024,false],"1536x1536":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9.png",1024,1024,false],"2048x2048":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9.png",1024,1024,false],"blog-thumb":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9-530x250.png",530,250,true],"blog-full":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2026\/02\/news_image_1-9-1024x450.png",1024,450,true]},"rttpg_author":{"display_name":"MUHAMMAD ISMAIL","author_link":"https:\/\/globalcryptoguru.com\/vi\/author\/ai-news-automation\/"},"rttpg_comment":0,"rttpg_category":"News 1<\/a>","rttpg_excerpt":"South Korea’s financial regulators are under fire for their inability to detect significant shortcomings in Bithumb’s operations, which culminated in a historic Bitcoin blunder. Despite multiple inspections by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), a critical vulnerability persisted, enabling a single employee to execute substantial coin transfers without oversight. According…","_links":{"self":[{"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/posts\/5867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/comments?post=5867"}],"version-history":[{"count":1,"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/posts\/5867\/revisions"}],"predecessor-version":[{"id":5868,"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/posts\/5867\/revisions\/5868"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/media\/5866"}],"wp:attachment":[{"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/media?parent=5867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/categories?post=5867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalcryptoguru.com\/vi\/wp-json\/wp\/v2\/tags?post=5867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}