Bithumb CEO Admits $40 Billion Bitcoin Transfer Error Due to Internal Failures

Bithumb acknowledges internal system flaws behind a mistaken multi-billion Bitcoin transfer, prompting regulatory investigation into asset-matching and account segregation safeguards.

BTC

Summary

Bithumb admitted that internal system weaknesses led to mistakenly crediting 620,000 BTC instead of 620,000 KRW to customer accounts, causing a 17% plunge in Bitcoin prices on the exchange. The Korean Financial Supervisory Service launched an investigation after identifying asset-matching and account-segregation deficiencies. Most of the funds were recovered, but 1,786 BTC were sold before accounts were frozen. The CEO attributed the mishap to 24-hour processing delays and outdated holdings data.

Terms & Concepts
  • Financial Supervisory Service (FSS): South Korea’s financial regulator responsible for supervising and enforcing laws in banking, securities, and insurance industries.
  • BTC: A common abbreviation for Bitcoin, the world’s first and largest cryptocurrency by market capitalization.
  • KRW: The currency code for the South Korean won, the official currency of South Korea.