Bitcoin
February 20, 2026
South Korea’s crypto sector has been under a harsh spotlight. What began as a routine promotional campaign at Bithumb spiraled into one of the strangest accounting disasters in recent crypto times. Instead of crediting users with a modest 2,000 Korean won, the exchange mistakenly credited 2,000 BTC per account. For a brief moment, the system reflected roughly 620,000 BTC, valued at more than $43 billion, that simply did not exist.
The Bithumb Bitcoin error has turned into a full-blown regulatory controversy, especially as the South Korean FSC and its enforcement arm, Financial Supervisory Service (FSS), continue to push back the timeline of their investigation.
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How the $43B Bithumb Bitcoin Error Exposed South Korea FSC Oversight Gaps
It should be noted that scrutiny continued even after the exchange managed to recover most of the wrongly credited funds. But not everything came back. Around 125 BTC remained missing, according to company disclosures. This amount is worth over $8 million at recent BTC prices. The Bitcoin mishap triggered a brief wave of attempted withdrawals and sales. This further showed how quickly technical failures can destabilize market trust.
Lawmakers are now questioning why repeated inspections failed to catch deeper vulnerabilities. The Korea Times reported that regulators had examined Bithumb multiple times since 2022, yet systemic issues continued. Several argue this reflects broader weakness in crypto exchange oversight.
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The probe has also expanded beyond the immediate glitch. Regulators are reviewing two earlier payment incidents. This widening scope partly explains the Bithumb probe delay, but it has not softened criticism. Speaking about a former incident, Bithumb CEO Lee Jae-won said during an emergency National Assembly session on Feb. 11,
“There were two previous cases in which coins were mistakenly paid out and later recovered, but the amounts were minimal.”
South Korea and its Crypto-Related Drama
The timing of this Bithumb Bitcoin mishap could not be worse. South Korea already faced embarrassment after separate cases involving missing government-held Bitcoin. In one widely reported incident, 22 BTC disappeared from a police cold wallet in Seoul. Similar security lapses have been documented in prosecution-controlled wallets, according to reports.
Regulators are under pressure as they have to deal with more than just a single error. They have to boost their crypto exchange oversight. But the Bithumb case became symbolic of bigger structural risks in a country with one of the most active crypto trading populations. Data from CoinGecko reveals that Bithumb has a trading volume of over $500 million despite its latest mishap.
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