South Korea Launches Probe Into Bithumb After $43B Bitcoin Blunder “Fat Finger”
South Korea’s Financial Supervisory Service (FSS) has stepped up scrutiny of cryptocurrency giant Bithumb following an unprecedented operational blunder in which the company accidentally found customers worth tens of billions of dollars.
Summary
- South Korea’s Financial Supervisory Service (FSS) has launched a full investigation into Bithumb following the massive $43 billion Bitcoin “fat-finger” blunder.
- The incident was caused by an internal operating error that temporarily put users’ Bitcoin beyond what was held by the exchange.
- Regulators are examining Bithumb’s internal controls and IT systems, with potential penalties if violations are confirmed.
The investigation follows a spectacular error on February 6, 2026, when Bithumb, during a promotional event, indirectly distributed 620,000 Bitcoin, worth about $40 billion to $44 billion at market prices, to users instead of the intended small rewards.
The error was caused by an employee entering payments in Bitcoin (BTC) units rather than Korean won, which led to an explosion of Bitcoin credits being over-issued before the error was discovered.
What happened to Bithumb’s mistake
In a “Random Box” promotion designed to reward users with a small amount of money, Bithumb’s payment system mistakenly issued Bitcoin due to a unit input error, causing a massive backlash.
In a few minutes, hundreds of users received a large amount of Bitcoin in their accounts, which is equivalent to 13–14 times of Bithumb’s actual holding of BTC based on industry estimates.
The exchange acted quickly to suspend the affected accounts and block trades and withdrawals within about 35 minutes, recovering the large amount of lost tokens. However, a small fraction, representing millions in value, were sold or withdrawn before the controls went into effect.
FSS investigations and regulatory responses
Initially launching an emergency review, the FSS escalated its review to a full formal investigation. Bithumb has been notified of an investigation into the divestment that went wrong and whether internal controls violated the Virtual Assets User Protection Act or other regulatory standards.
FSS Governor Lee Chan-jin emphasized that the episode exposed systemic weaknesses in internal control and electronic ledger systems in the trade. Regulators are investigating how an exchange with very few real reserves was able to record and pay phantom Bitcoin balances so quickly.
Depending on what the investigators find, the investigation could lead to sanctions against Bithumb, including fines or suspension of operations if negligence or violations are confirmed. The FSS also noted that users who mistakenly sell Bitcoin may be legally obligated to return it as unjust enrichment under current interpretations of Korean law.
