Bithumb ₱2.31 trillion ($40 billion) Bitcoin Error Triggers Seoul Crypto Crackdown
South Korea's ruling Democratic Party is fast-tracking crypto legislation after a Bithumb employee mistakenly distributed ₱2.31 trillion ($40 billion) in Bitcoin to 249 lucky draw winners instead of $423 in won each.
Key Takeaway
Seoul is using Bithumb's $40 billion mistake to justify treating exchanges like banks.
South Korea's ruling Democratic Party is accelerating crypto legislation after a Bithumb official accidentally distributed ₱2.31 trillion ($40 billion) in Bitcoin to 249 customers during a February lucky draw promotion.
The employee meant to send roughly $423 in Korean won to each winner. Instead, he issued Bitcoin worth orders of magnitude more. The blunder went global on February 6, just weeks after Upbit—Bithumb's closest domestic rival—lost ₱2.08 billion ($36 million) in a hack.
The Financial Supervisory Service extended its formal investigation into the exchange until the end of February, the same deadline Digital Asset Taskforce Chair Lee Jung-moon set for assessing separate proposals from his committee and the government. An unnamed industry insider told reporters the incident reinforced the view that crypto should be treated as integral financial infrastructure, not just an investment platform.
Proposed rules include holding exchanges liable for system faults, requiring multi-signature transfers, and imposing cooling-off periods for large transactions. Policy Committee Chair Han Jeong-ae said she supports regulators' push to restructure exchanges until they meet the same standards as traditional financial firms. Seoul National University Law School Professor Lee Jeong-su said new legislation should focus on stricter licensing, better internal controls, and stronger oversight by financial authorities. Lawmakers also plan to bundle stablecoin issuance rules with the exchange regulations.
This article was written based on reporting from Dlnews.
