BitcoinExchange.no

South Korean regulators have launched an investigation into Bithumb following an extraordinary system error that resulted in the accidental distribution of nearly $43 billion worth of Bitcoin to customers.

The incident, which occurred last week, was caused by an internal technical malfunction during a routine balance update. Although the exchange quickly identified and reversed the error, the scale of the incident raised serious concerns among regulators.

Bithumb has since announced a compensation plan aimed at affected users, stating that no customer funds were permanently lost. The exchange emphasized that withdrawals linked to the error were swiftly frozen and corrective measures were implemented.

Regulators are now reviewing Bithumb’s internal controls, risk management systems, and compliance procedures. The case has reignited debate in South Korea over exchange oversight, operational transparency, and the need for stronger safeguards within centralized crypto platforms.