South Korea’s Financial Supervisory Service (FSS) has launched a full investigation into Bithumb after the exchange accidentally credited customers with a staggering $43 billion in Bitcoin terming it a so-called “fat-finger” mistake.
The investigation comes after a major mishap that took place on February 6, when Bithumb, during a routine promotional event, accidentally credited users with 620,000 Bitcoin, instead of the intended small cash rewards.
The transferred BTC is valued between $40 billion and $44 billion based on fluctuating market values.
Interestingly, the investigation comes just a day after the nation’s watchdog had announced its crypto plan for 2026, intensifying its scrutiny on exchanges and firms over preventable IT mishaps.
FSS launches full-scale investigation for Bithumb
South Korea’s FSS has ramped up its scrutiny of Bithumb, moving from an emergency review to a full-scale investigation.
The exchange has been formally notified, as regulators dig into what went wrong and whether the incident breached the Virtual Asset User Protection Act or other rules.
FSS Governor Lee Chan-jin said the mistake exposed serious weaknesses in Bithumb’s internal controls and ledger systems.
Authorities are now looking at how the exchange, with far fewer actual reserves, could record and distribute such a massive amount of Bitcoin so quickly.
Depending on the outcome, Bithumb could face fines or even a suspension, and users who sold the accidentally credited Bitcoin might be required to return it under Korean law.
Regulators are also looking at the chronological order of the events and are investigating how the alleged glitch happened and how quickly it was caught.
The final motive of the watchdog is to ensure safeguard measures in order to prevent a repeat of such an incident in the future. The incident highlights the risks of handling massive sums in crypto and shows why authorities in South Korea are keeping a close eye on exchanges to protect investors and maintain trust in the market.
Bithumb glitch: what had happened?
Bithumb accidentally gave out Bitcoin during a “Random Box” promotion meant to give customers small cash rewards. The alleged glitch took place because of a mistake in entering the units.
The error led to payouts that were much bigger than what the exchange actually had, about 13 to 14 times more than what was planned.
Within minutes, hundreds of individuals noticed large Bitcoin deposits in their wallets. Bithumb moved immediately and blocked accounts while also suspending trading and withdrawals within 35 minutes.
The swift action helped the exchange in retrieving the majority of the incorrectly transmitted tokens. However, a minor amount worth millions was sold or removed before the rules went into force.