South Korean Regulators Launch Emergency Probe into Bithumb Following ₩60 Trillion Bitcoin Display Error
South Korea's financial watchdogs stormed into action this week—launching an emergency investigation into crypto exchange giant Bithumb after a jaw-dropping display error temporarily showed a user's Bitcoin balance at a staggering ₩60 trillion.
The Glitch That Shook the Market
Imagine logging into your trading account and seeing a number so large it could buy a small country. That's exactly what happened when a system malfunction at Bithumb displayed a Bitcoin balance equivalent to roughly $45 billion—a figure that dwarfs the exchange's actual reserves and sparked immediate regulatory alarm.
Regulators Don't Find This Funny
The Financial Services Commission mobilized its digital asset oversight unit within hours, demanding full access to Bithumb's trading systems, audit logs, and risk management protocols. This isn't their first rodeo with exchange irregularities—Korean regulators have been tightening screws on crypto platforms since the Luna collapse exposed systemic vulnerabilities.
Why This Matters Beyond One User's Shock
Display errors might seem harmless—until you consider the market manipulation potential. A ₩60 trillion Bitcoin balance flashing across screens could trigger panic buying, algorithmic trading chaos, or false confidence in exchange liquidity. In crypto's wild west, even visual glitches can have real-world financial consequences.
The Irony of Precision in an Imprecise System
Here's the finance jab: Traditional banks get fined for million-dollar rounding errors while crypto exchanges can accidentally create—and then investigate—imaginary fortunes larger than national GDPs. The industry keeps promising institutional-grade infrastructure while struggling with display basics.
Bithumb now faces the music as regulators determine whether this was a simple technical hiccup or symptomatic of deeper operational issues. Either way—it's another reminder that in crypto, sometimes the scariest numbers are the ones that shouldn't exist at all.
Bithumb in regulators’ crosshairs after 2,000 bitcoin giveaway blunder
According to a news update from local outlet Chosun Business, the FSS convened an emergency response meeting on the morning of January 7, chaired by Governor Lee Chan-jin. The supervisory group then dispatched officers to Bithumb’s offices to collect incident reports.
Chosun, citing sources familiar with the investigations, confirmed the Financial Services Commission is also conducting its own parallel review. FSC vice chairman Kwon Dae-young will reportedly chair a meeting on an unspecified date, where Bithumb CEO Lee Jae-won is slated to attend.
Bithumb’s promotional event was designed to distribute small prizes ranging from 2,000 won to 50,000 won for each participant. However, because of a unit entry error, participants received a minimum of 2,000 Bitcoins apiece.
The Asia Business Daily’s analysis found that around 700 users bought the Random Boxes, with about 240 opening them to claim rewards. Most of those who opened the boxes reportedly received 2,000 bitcoins credited directly to personal wallets.
Since bitcoin was trading in the upper 98 million won range at the time, each recipient could have received about 196 billion won. The aggregate value of the mistaken distribution is estimated at 60 trillion won, the largest accidental crypto disbursement recorded in the country.
About 3 billion won, or $2.1 million, was reportedly withdrawn by users who liquidated assets they had obtained through the error. Several individuals are said to have realized profits of hundreds of millions of won by selling when market prices reached 102 million won per coin.
Heavy selling pressure from recipients caused a sharp but brief price dislocation on Bithumb’s order books. At 7:30 PM local time Thursday, Bitcoin on the crypto trading platform plunged to 81.11 million won, or $55,000, well below prices seen in global exchanges.
Bithumb recognized the abnormal activity 8 minutes later and suspended deposits and withdrawals around 7:40 PM. In an apology issued early the next morning, the company said:
“An abnormal quantity of Bitcoin was granted to some customers. We sincerely apologize for the inconvenience caused to our customers. The market price returned to normal levels within five minutes, and the domino liquidation prevention system functioned properly, so there was no chain liquidation caused by the abnormal Bitcoin price.”
Scrutiny from competition watchdog piles on Bithumb
South Korea’s competition authority, the Korea Fair Trade Commission, has also put Bithumb under investigation. Chosun Biz reported KFTC raided the company’s office last week over its promotion practices.
A researcher from the commission visited Bithumb’s headquarters in Gangnam-gu, Seoul, to collect documents of its marketing campaigns. According to one source, the commission intends to use the details to investigate whether claims made in advertising were objective and lawful.
The commission is also looking at whether Bithumb coercively induced customer participation by providing 100,000 won in support money for new customers who used its API to participate. The company allegedly altered its terms for payout since the level of customer participation in the event jumped.
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