Bithumb, known as South Korea’s second largest cryptocurrency exchange, attracted the attention of the country’s financial authorities after a major distribution error. Due to a problem in the internal accounting system of the stock exchange, 620 thousand Bitcoins, worth approximately $41 billion, were mistakenly transferred to users’ accounts. Following the incident, authorities launched an in-depth investigation at the institution.
Problem Occurrence and Market Impact
During a “random box” event held on February 6, 2026, many users saw false Bitcoin balances in their accounts because an employee deposited Bitcoin instead of Korean won. After the incident, when users quickly put these digital assets up for sale on the stock exchange, there was a sudden price drop of approximately 17 percent.
Statements from the Financial Supervision Agency
The Financial Supervisory Service (FSS), which oversees the crypto market in South Korea, turned the field investigation it initiated after the incident into a full-fledged investigation. Authorities reported that the amount of Bitcoin held by Bithumb at that time was approximately 42 thousand, and the total amount distributed reached approximately 15 times this amount. FSS Chairman Lee Chan-jin emphasized that such “ghost coin” incidents pose a fundamental threat to the digital asset market and must be resolved.
In the evaluation made by the institution, it was pointed out that the exchange carried out transactions with an in-house accounting system instead of the public blockchain, so balances that had no basis in user accounts were mistakenly defined.
Lee Chan-jin pointed out the importance of preventing similar problems in order to integrate the virtual asset market into the traditional financial system.
Artificial Intelligence Supported Audit and Market Tracking
The crisis in Bithumb caused South Korea to accelerate its 2026 crypto audit plan. The financial authority announced that an artificial intelligence-based tracking system that can instantly detect suspicious movements in the markets will be put into effect. This system will be used to monitor large-scale transactions, price volatility and coordinated manipulation efforts in the market.
Regulators are highlighting technology-based measures to prevent similar distribution errors. In particular, the importance of such automatic surveillance tools is emphasized in order to detect large investor movements and unexpected changes more quickly.
While the incident reveals the need for structural control in the crypto market, industry representatives state that volatility also carries significant risks for institutions. In this process, asset losses of some large investors also came to the fore due to the fluctuation in the market.
