South Korea’s Financial Supervisory Service (FSS) has initiated a formal investigation into cryptocurrency exchange Bithumb following a $43 billion operational error in which users were temporarily credited with massive amounts of Bitcoin. The incident occurred during a promotional “Random Box” event, when an employee mistakenly entered payouts in Bitcoin units instead of Korean won, creating accounts with balances far exceeding the exchange’s actual holdings.
Bithumb detected the error within minutes and froze affected accounts, blocking trading and withdrawals. Industry estimates suggest the overshot Bitcoin credits amounted to roughly 13–14 times the firm’s total reserves, though most of the tokens were recovered. A portion, however, was sold or withdrawn before controls were applied, triggering potential legal consequences for users under Korean law regarding unjust enrichment.
The FSS is reviewing Bithumb’s internal controls, IT systems, and compliance with the Virtual Asset User Protection Act. Officials warned that depending on the findings, the exchange could face fines or suspension. The probe underscores ongoing regulatory concerns over operational risk and systemic controls in the fast-growing South Korean crypto market.
