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Aug 4, 2026

South Korean Financial Regulator Sends Inspection Report to Bithumb Over Bitcoin Overpayment Incident, Sanctions Process Underway

South Korea's Financial Supervisory Service has delivered an inspection opinion to cryptocurrency exchange Bithumb following a major Bitcoin overpayment incident caused by a system error, initiating formal sanctions proceedings. Separately, Bithumb and KB Kookmin Bank are pursuing a one-year extension of their real-name account partnership agreement set to expire on August 24.

Aug 4, 2026·4 sources
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Top claims

  • ▪The final sanctions against Bithumb are expected to be confirmed around the end of 2026, as the Sanction Review Committee enters a recess in August 2026.
  • ▪In early 2026, the virtual asset exchange Bithumb mistakenly paid out approximately 620,000 Bitcoins due to a system error.
  • ▪The Financial Supervisory Service will finalize Bithumb's sanction level after receiving Bithumb's explanation, issuing a prior notice, and holding a Sanction Review Committee deliberation.

Topics

Crypto regulationCrypto exchangesCrypto enforcement actionsBitcoinCrypto & banking regulation

Related entities

South Korea

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