Bithumb, South Korea’s second-largest cryptocurrency exchange, has attracted the scrutiny of the country’s financial authorities following a major distribution error. Due to an internal accounting issue, approximately 620,000 Bitcoin, valued at around $41 billion, were mistakenly transferred to user accounts. In response, officials have launched an in-depth investigation into the incident.
The Incident and Market Impact
On February 6, 2026, during a “random box” event, a staff member accidentally deposited Bitcoin instead of Korean won. This led to numerous users finding erroneous Bitcoin balances in their accounts. As these users rushed to sell the digital assets, the market saw a sudden price drop of approximately 17%.
Statements from the Financial Regulatory Authority
The Financial Supervisory Service (FSS), which oversees the cryptocurrency market in South Korea, escalated its initial field inspection into a full-scale investigation following the event. Authorities reported that Bithumb held about 42,000 Bitcoin at the time, but the distributed sum was roughly 15 times greater. FSS Chairman Lee Chan-jin emphasized the need to resolve such “ghost coin” incidents, which pose a fundamental threat to the digital asset market.
Reviews from the agency indicated that Bithumb executed transactions using an internal accounting system rather than a public blockchain, resulting in unsupported balances appearing in user accounts by mistake.
Lee Chan-jin pointed out the importance of preventing similar issues for the integration of the virtual asset market with the traditional financial system.
AI-Powered Surveillance and Market Monitoring
The crisis at Bithumb has accelerated South Korea’s 2026 crypto regulatory agenda. The financial authority announced plans to implement an AI-based monitoring system capable of instantly detecting suspicious activities within the markets. This system will track large-scale transactions, price volatility, and coordinated manipulation efforts.
Regulators are emphasizing technology-driven solutions to prevent similar distribution errors. Notably, the importance of such automated oversight tools is highlighted for their ability to quickly identify major investor movements and unexpected changes.
The incident has underscored the need for structural oversight in the crypto market, while industry representatives have noted the significant risks that volatility poses for exchanges. During this period, the impact of market fluctuations on some major investors’ asset losses has also come to the fore.
