South Korean Regulators Investigate Bithumb Over $43 Billion Bitcoin Crediting Error

South Korea's financial regulator has opened an investigation into cryptocurrency exchange Bithumb following a massive operational error that saw the platform incorrectly distribute 620,000 BTC—worth approximately $42.8 billion—to customer accounts.

The incident occurred during a promotional campaign intended to reward users with 2,000 South Korean won (roughly $1.40). According to reports, an employee mistakenly entered "BTC" instead of "won" as the currency unit, resulting in users receiving 2,000 Bitcoin each.

While Bithumb recovered most of the erroneously credited cryptocurrency, approximately 125 BTC valued at $8.6 million remains outstanding. The exchange maintains that no customer assets were lost or damaged in the incident.

The Financial Supervisory Service (FSS) has identified several alleged violations, including discrepancies between cryptocurrency held in Bithumb's wallets and amounts shown in user accounts. Regulators also highlighted inadequate internal controls, noting the error stemmed from a single point of failure involving one staff member.

Analysts noted that Bithumb's actual reserves contain around 41,798 BTC—far less than the virtual amount temporarily credited. Blockchain data suggests approximately 3,875 BTC were withdrawn from the exchange around the time of the incident, potentially indicating successful withdrawals of miscredited funds or diminished user confidence.

The FSS has stated it will pursue strict legal action against activities that disrupt market order.