South Korea’s Financial Supervisory Service (FSS) is reviewing Bithumb
$589.04M
after the exchange displayed large Bitcoin
The FSS began the review when user accounts showed hundreds of thousands of BTC that the platform did not actually own.
According to Yonhap News, the FSS is checking whether Bithumb violated platform rules by allowing this error to appear as real balances.
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Bithumb explained the situation on February 7. It said a promotional event caused the system to “incorrectly pay” 620,000 BTC, worth about $42.8 billion, to many users.
The exchange managed to reverse most of these false entries. However, around 125 BTC, valued at roughly $8.6 million, remains unresolved.
This gap has raised concerns about how centralized exchanges manage their operations. It also renewed public discussions about “paper Bitcoin“, in which account balances may not match verifiable assets.
Bithumb said customers did not lose money and that all actual funds remained safe. Even so, financial officials in South Korea noted that mistakes of this scale may affect trust in the broader market.
One FSS representative stated that the agency views the matter seriously and intends to take legal action if any behavior is found to disrupt market stability.
Recently, Bithumb corrected a promo error that sent extra Bitcoin to some users and caused a short price shift. How did it happen? Read the full story.
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