South Korean Regulator Cracks Down on Bithumb Over Bitcoin Overpayment Error

The Financial Supervisory Service (FSS) of South Korea has initiated sanctions procedures against Bithumb, one of the country's largest cryptocurrency exchanges, following a significant Bitcoin overpayment error earlier this year.

A system malfunction led to an erroneous transfer of 620,000 Bitcoin, far exceeding the approximately 42,000 Bitcoin Bithumb actually held at the time. The FSS has sent an inspection findings notice to the exchange, marking the first official step in a disciplinary process that could result in penalties.

The regulator has requested Bithumb's explanation before drafting final disciplinary measures. After receiving the exchange's response, the FSS will issue a prior notice of sanctions and then submit the case to its sanctions deliberation committee for a final decision on the level of penalties.