Bithumb | Crypto

South Korean crypto exchange Bithumb files for a court-approved asset freeze to reclaim 7 BTC remaining from a February payout error. South Korean crypto exchange Bithumb has begun legal proceedings to recover 7 Bitcoin still missing from a payout error that saw 620,000 BTC mistakenly distributed during a promotional event in February. The exchange has filed for a provisional attachment, a court-approved measure that freezes assets ahead of a civil lawsuit, targeting users who have yet to return the funds, according to a Thursday report by local outlet Chosun Biz. On Feb. 6, the exchange wanted to distribute a total of 620,000 won ($420) to 249 event winners. Instead, due to an input error, the system sent out 620,000 Bitcoin (BTC), briefly valuing the mistaken transfer at roughly 62 trillion Korean won ($42 billion). Although the exchange reversed the transactions within minutes, a portion of the funds had already been moved. Read more

According to the company CFO, Bithumb was “strengthen[ing] accounting policies and internal controls” ahead of its IPO plans, already delayed from 2025. South Korea-based cryptocurrency exchange Bithumb is reportedly expecting its initial public offering (IPO) sometime after 2028, in another delay after restructuring and regulatory hurdles. According to a Tuesday report from Maeil Business News Korea, a Bithumb official said that it would “focus on preparing for the listing until 2027.” CFO Jeong Sang-gyun said at the company’s annual shareholder meeting that Bithumb was “strengthen[ing] accounting policies and internal controls” following an IPO advisory contract with Samjong KPMG. Shareholders reconfirmed CEO Lee Jae-won for a two-year appointment at the Tuesday meeting, but the delayed IPO timeline was the latest after Bithumb initially expected a 2025 listing. Under Lee, the exchange faced a six-month suspension and a $24 million fine from South Korean authorities for alleged anti-money-laundering violati...

Bithumb was reportedly given a six-month partial suspension by South Korea’s Financial Intelligence Unit for alleged anti-money laundering failures. Bithumb, South Korea’s second-largest cryptocurrency exchange by trading volume, is reportedly seeking to reappoint CEO Lee Jae-won despite recent alleged anti-money laundering failures and other controversies, according to the Korea Times. The exchange will convene its regular shareholders’ meeting on March 31, and a proposal to keep Lee in the top job will be put to shareholders, the Korea Times reported on Sunday, citing industry sources. His current term expires at the end of the month, and a successful renewal would keep Lee as the exchange’s CEO for another two years. Cointelegraph has contacted Bithumb for comment. Read more

Metaplanet invests in Japanese Bitcoin companies. Bithumb handed a six-month suspension. Asia Express

Regulators found 6.65 million AML violations at Bithumb, including 45,772 crypto transfers involving 18 unregistered overseas VASPs. South Korea has fined crypto exchange Bithumb 36.8 billion won (about $24.5 million) and imposed a six-month partial business suspension after finding widespread violations of Anti-Money Laundering (AML) rules, according to a Yonhap News Agency report.  According to Yonhap, regulators identified about 6.65 million violations during an AML inspection, including failures related to customer identity verification, transaction restrictions and record-keeping requirements. Authorities found Bithumb facilitated 45,772 crypto transfers involving 18 unregistered overseas virtual asset service providers (VASPs), in violation of South Korea’s AML rules.  The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) reportedly decided on the penalties following a sanctions deliberation committee meeting reviewing the exchange’s compliance with the Act on Reporting and...

Crypto exchange Bithumb risks a partial business suspension for negligence around money laundering and customer verification practices, according to local media reports. Bithumb, South Korea’s second-largest cryptocurrency exchange by trading volume, is reportedly facing a possible partial business suspension of up to six months as regulators step up enforcement over anti-money laundering controls. South Korea’s Financial Intelligence Unit (FIU) gave Bithumb a preliminary notice of a six-month partial suspension over alleged anti-money laundering and know-your-customer failures under the Act on Reporting and Using Specified Financial Transaction Information, according to local media reports on Monday. The regulator reportedly cited concerns over dealings with unregistered overseas virtual asset service providers and shortcomings in customer due diligence. The FIU also issued a reprimand warning to Bithumb’s CEO, a warning considered a heavy penalty, which may lead to restrictions on his reappointment or futur...

One input mistake at South Korea’s Bithumb turned a routine promo payout into a $44 billion disaster for a simple reason: crypto moves at internet speed, but many exchanges still run on back-office habits built for slower systems. On Feb. 6, Bithumb meant to hand out tiny cash rewards as part of a promotion, about […] The post Traders walked into a “free Bitcoin” trap on Bithumb and it triggered a 17% flash drop appeared first on CryptoSlate.

Legal experts say civil claims offer Bithumb the clearest route to recovering Bitcoin mistakenly distributed in a $43 billion error.

South Korean authorities launched an investigation into Bithumb after it mistakenly credited 620,000 BTC to users, adding to concerns about “paper Bitcoin” and internal controls. South Korea’s financial watchdog opened an investigation into Bithumb after the exchange mistakenly credited hundreds of thousands of Bitcoin that it did not actually hold to user accounts. The Financial Supervisory Service (FSS) launched a probe into Bithumb for alleged platform violations around the erroneous crediting of billions of dollars in non-existent Bitcoin (BTC) to user accounts, Yonhap News reported Tuesday. Bithumb acknowledged the incident on Saturday, saying the platform “incorrectly paid” 620,000 BTC ($42.8 billion) to users during a promotional event. Read more

Questions raised after Bithumb intern sent 15X more “phantom” Bitcoin to users than it held. Plus, did a Hong Kong fund blow up? Asia Express

Questions raised after Bithumb intern sent 15X more “phantom” Bitcoin to users than it held. Plus, did a Hong Kong fund blow up? Asia Express

Questions raised after Bithumb intern sent 15X more “phantom” Bitcoin to users than it held. Plus, did a Hong Kong fund blow up? Asia Express

Bithumb says it has reclaimed most of the excess BTC credited during a promotional error and used company funds to cover 1,788 Bitcoin that had already been sold. South Korean cryptocurrency exchange Bithumb says it has resolved an incident in which a promotional reward error credited certain user accounts with excess Bitcoin. In a Sunday statement, the exchange confirmed it recovered 99.7% of the overpaid Bitcoin (BTC) on the same day the incident occurred. The remaining 0.3%, totaling 1,788 Bitcoin that had already been sold, was covered using company funds to ensure customer balances remained fully matched. “Bithumb's holdings of all virtual assets, including Bitcoin (BTC), are 100% equivalent to or exceeding user deposits,” the exchange wrote. Read more

The South Korean exchange said an internal error during a promotional event led to brief price dislocations, stressing that no customer assets were lost. Bithumb said it identified and corrected an internal payout error after an “abnormal amount” of Bitcoin was credited to some user accounts during a promotional event, briefly causing sharp price fluctuations on the exchange. In a company announcement on Friday, the South Korean crypto exchange said the price dislocation occurred after some recipients sold the mistakenly credited Bitcoin, but that it quickly restricted the affected accounts through internal controls, allowing market prices to stabilize within minutes and preventing any chain liquidations. Bithumb said the incident was unrelated to any hacking or security breach and did not result in losses to customer assets, adding that trading, deposits and withdrawals are operating normally. The company said that customer funds remain safely managed and that it will transparently disclose follow-up actions...

An internal reward distribution mistake briefly sent bitcoin prices sharply lower on South Korea’s Bithumb exchange after users were mistakenly credited with large phantom balances.

Millions of long-inactive users still hold crypto at Bithumb, highlighting how early retail capital can remain untouched for years. South Korean crypto exchange Bithumb flagged over $200 million in customer assets dormant across 2.6 million accounts, offering a glimpse into how much retail capital remains untouched on centralized platforms.  The disclosure came as part of the exchange's dormant asset recovery campaign, which targets users who have not logged in or traded for over a year. According to Bithumb, dormant assets total about 291.6 billion Korean won (about $201.8 million), with some balances left inactive for over a decade. Bithumb said the largest dormant holding it had identified was worth about $2.84 million. Meanwhile, the longest period of inactivity stretched to 4,380 days, or almost a dozen years.  Read more

The crypto exchange Bithumb has made “significant reductions” to the scale of its crypto lending services amid ongoing concerns from financial regulators. The post Bithumb to Scale Back Crypto Lending Services After Regulatory Pressure appeared first on Cryptonews.