 ▲ Bithumb, Bitcoin (BTC), Virtual Assets/ChatGPT-generated image © |
Tensions are rising across the virtual asset industry as the Financial Supervisory Service (FSS) has extended its inspection period into Bithumb’s 60 trillion won Bitcoin overpayment incident through the end of this month. Simultaneous inspections of major exchanges, including Upbit, have placed overall internal control systems under scrutiny.
According to financial authorities on the 19th, the FSS extended its inspection schedule for Bithumb, which was originally set to conclude on the 13th, to the end of the month. Although FSS Governor Lee Chan-jin had stated during a National Assembly inquiry that he would receive a report on the inspection results, the period was reportedly extended due to the need for additional verification. The number of inspectors has been increased to eight, and the probe is broadly examining compliance with investor protection obligations and anti-money laundering (AML) systems.
Authorities are particularly focusing on the structure of the IT system that enabled the distribution of coins that were not actually held. Key issues include how data consistency between the exchange’s ledger and wallets was maintained, how asset verification systems operated, and why the error was not prevented in advance. Regulators have stated that they will comprehensively reexamine the entire system, including past overpayment cases.
Bithumb has previously been criticized for inadequate internal controls. According to materials disclosed by National Assembly Political Affairs Committee member Min Byung-deok of the Democratic Party, during an on-site consulting process in 2024, the exchange was found to lack sufficient systems for accumulating and managing blockchain data to reconcile changes in virtual asset balances between its ledger and wallets. Nevertheless, despite six rounds of inspections and examinations conducted from 2021 to 2025, the possibility of input errors within the IT structure was not identified, raising questions about supervisory responsibility.
During a National Assembly inquiry, Bithumb CEO Lee Jae-won acknowledged that there had been two previous cases in which overpaid assets were later recovered, but explained that the scale was minor. However, industry sources believe there may have been additional suspected overpayment cases. Authorities view the current incident as fundamentally different from past simple errors, as it involves the issuance of “phantom coins” exceeding actual holdings.
Meanwhile, financial authorities and the Digital Asset eXchange Alliance (DAXA) launched an emergency inspection on the 11th targeting five exchanges—Bithumb, Upbit, Coinone, Korbit, and Gopax—to review their asset verification systems and overall internal controls. Any deficiencies identified will be reflected in strengthened self-regulatory measures by DAXA and discussions on the second phase of virtual asset legislation. Industry observers are closely watching whether this incident, which directly affects trust in domestic exchanges as a whole, will lead to structural improvements beyond simple sanctions.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from decisions based on it. The content should be interpreted solely for informational purposes.*