Bithumb exchange faces six-month partial suspension from South Korea’s FIU over AML violations

South Korea's Financial Intelligence Unit (FIU) has issued a preliminary notice to cryptocurrency exchange Bithumb, imposing a six-month partial suspension for breaches of anti-money laundering regulations. The disciplinary action also extends to CEO Lee Jae-won, marking another escalation in regulatory scrutiny over the platform.

The sanctions stem from violations of the Specific Financial Information Act, compounded by operational missteps including a high-profile Bitcoin transfer error. Bithumb mistakenly processed 620,000 BTC—exceeding its actual holdings by twelvefold—in a transaction initially valued between $40 billion to 60 trillion KRW.

Regulators highlighted systemic failures in monitoring overseas virtual asset operators and Know-Your-Customer procedures. The enforcement aligns with South Korea's broader campaign to enforce compliance across crypto exchanges. Bithumb maintains the restriction currently applies solely to new member transactions, pending final review.