South Korea probes Bithumb after $43B ‘phantom’ Bitcoin payout
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.