Following a $43 billion error involving Bitcoin at the Bithumb exchange, South Korean authorities have launched a full investigation. The probe will focus on the exchange’s financial reserves, internal controls, and the potential impact on market confidence.
South Korea’s financial regulator is thoroughly investigating the cryptocurrency exchange Bithumb following a significant error where approximately $43 billion worth of Bitcoin was mistakenly sent to the wrong recipients last week. Authorities responded quickly, signaling their worry about the potential impact on the financial market.
Regulators Escalate Bithumb Inspection After Major Bitcoin Mishap
As an analyst, I’m tracking a significant development: the Financial Supervisory Service, according to Yonhap, has escalated a standard inspection into a much more thorough investigation. This change was prompted by immediate worries about the company’s internal controls and how they’re managing assets. Consequently, the inspection isn’t limited to just basic compliance anymore; it’s broadened to cover a wider range of issues.
Related Reading: South Korea Turns to AI to Detect Crypto Manipulation in 2026 | Live Bitcoin News
Financial regulators gave Bithumb advance notice before beginning a formal inspection on February 10th. Initial on-site findings quickly revealed serious concerns, prompting investigators to broaden the scope of the review and add more staff to handle the expanded investigation.
Authorities are taking this situation very seriously. They’ve promised strong consequences for anyone disrupting the markets, and will take action based on the results of their investigation.
The regulatory body is also examining how the incident affected the overall market. As a result, authorities might change the rules for how cryptocurrency exchanges hold and protect customer money. The findings of these reviews could lead to new regulations in the future.
Investigators are carefully examining a mismatch between the Bitcoin payments made and the actual amount of Bitcoin Bithumb claimed to have in reserve. The payments were significantly larger than Bithumb’s reported holdings, so verifying the accuracy of those reserves is a key focus of the investigation.
By the end of last year’s third quarter, Bithumb held approximately 42,000 Bitcoin. However, Bithumb only directly owned 175 of those Bitcoin; the remaining amount belonged to its customers.
As an analyst, I’m currently seeing estimates place Bithumb’s Bitcoin reserves around 46,000. However, authorities have flagged a much larger outflow of 620,000 Bitcoin from the exchange. This flagged amount is significantly higher – roughly 13 to 14 times their reported holdings – and warrants further investigation.
Inspection May Shape Future Virtual Asset Rules
Regulators are currently examining whether virtual asset exchanges are following the new User Protection Act. This law requires exchanges to securely hold the same amount of digital assets that their users deposit. Any differences between what users have and what the exchange holds could be a violation of the law.
One official warned this situation could damage confidence in the cryptocurrency market. Regulators are investigating whether everyone can withdraw their funds simultaneously, and are conducting stress tests to assess the market’s ability to handle a large number of withdrawal requests.
As part of my research, I’m currently looking into Bithumb’s security measures. Specifically, I’m examining their internal controls to understand how such large fund transfers could occur with only a single operator action. This means I’m closely reviewing their approval and authorization processes to identify any weaknesses or gaps in the system that might have allowed this to happen.
New systems are being tested to check if the amounts shown in financial records match the actual funds available. Regulators want to confirm these systems are effective, and any failures could result in requirements for changes and improvements.
As a researcher following this case, it’s clear the inspection findings are important for upcoming laws. We believe the results will directly influence the debate around the next stage of virtual asset regulations. And, importantly, the implications of this case extend far beyond just Bithumb – it has broader regulatory significance.
According to Yonhap, the investigation will wrap up once all data has been checked. Depending on what they find, Bithumb could face fines or be required to change how it does business. This means Bithumb is currently facing increased scrutiny from regulators.
The investigation shows that South Korea is taking a firm stance on regulating cryptocurrency. Protecting investors and ensuring openness are top priorities, which could lead to stricter rules for crypto exchanges.
Read More
- 21 Movies Filmed in Real Abandoned Locations
- 2025 Crypto Wallets: Secure, Smart, and Surprisingly Simple!
- The 11 Elden Ring: Nightreign DLC features that would surprise and delight the biggest FromSoftware fans
- 10 Hulu Originals You’re Missing Out On
- The 10 Most Beautiful Women in the World for 2026, According to the Golden Ratio
- 20 Films Where the Opening Credits Play Over a Single Continuous Shot
- Bitcoin’s Ballet: Will the Bull Pirouette or Stumble? 💃🐂
- Gold Rate Forecast
- Walmart: The Galactic Grocery Giant and Its Dividend Delights
- Top ETFs for Now: A Portfolio Manager’s Wry Take
2026-02-10 12:16