South Korean Lawmakers Criticize Regulators Over Bithumb's $43 Billion Bitcoin Error

South Korean legislators are demanding accountability from financial regulators following a massive error at cryptocurrency exchange Bithumb that mistakenly credited users with Bitcoin the platform did not possess.

During a promotional campaign on February 6, Bithumb incorrectly distributed 2,000 BTC per customer instead of the intended 2,000 Korean won (approximately $1.40), resulting in a total of 620,000 Bitcoin being credited across user accounts. The exchange has since recovered most of the erroneously distributed assets, with 125 BTC—valued at around $8.6 million—remaining unrecovered.

Opposition lawmaker Kang Min-guk criticized the Financial Services Commission (FSC) for failing to identify critical system vulnerabilities despite conducting at least three inspections of Bithumb since 2022. The FSC launched an investigation on February 10, initially scheduled to conclude by February 13, but has extended the probe until late February for additional review.

Bithumb CEO Lee Jae-won acknowledged during an emergency parliamentary session that two similar incidents had occurred previously, though involving significantly smaller amounts that were subsequently recovered.

The controversy arrives amid broader concerns about South Korea's digital asset oversight, including separate incidents where seized Bitcoin disappeared from law enforcement custody in 2021 and 2025.