Bithumb’s 620,000 BTC Distribution Disaster
South Korean lawmakers are pressuring the Financial Services Commission (FSC) due to crypto exchange Bithumb accidentally depositing Bitcoins it did not own to customers. In the February 6 promotion, instead of 2,000 Korean won (1.40 dollars) per user, 2,000 BTC was deposited, distributing a total of 620,000 BTC; the exchange recovered most of the assets, but 125 BTC (approximately 8.6 million dollars) could not be recovered. This error led to a selling panic and brought audit deficiencies to the forefront.
Harsh Criticisms from Lawmakers to the FSC
Lawmakers stated that the FSC failed to detect Bithumb’s system flaws in three audits since 2022, mentioning structural weaknesses. According to The Korea Times, the FSC delayed the investigation and postponed it to the end of February; the review covers the recent incident along with the previous two similar errors. Bithumb CEO Lee Jae-won stated that past small-scale errors have been compensated. FSC officials announced they will impose harsh penalties on actions disrupting market order.
From left to right: FSC Vice Chairman Kwon Dae-young, FSC Chairman Lee Chan-jin, and Bithumb CEO Lee Jae-won at the National Assembly session on February 11. Source: The Korea Times
Officials’ BTC Custody Weaknesses and Historical Losses
The incident also highlighted issues in the custody and security of digital assets seized by authorities; 22 BTC was lost at Gangnam Police Station in 2021, and 320 BTC at Gwangju Prosecutor’s Office in August 2025, with the latter returned by a hacker. Lawmakers and industry observers emphasized audit and custody weaknesses in the crypto market.
BTC Price and Technical Analysis: Resilience Despite Regulatory Pressure
Despite this news, according to BTC detailed analysis data, Bitcoin is trading at 68.013 dollars (+1,77% 24h). RSI at 37,87 is in oversold territory, and although the downtrend continues, strong supports exist: S1 65.072$ (strong, 68% score), S2 68.050$. Resistances R1 71.637$, R2 76.840$. Institutional buyers accumulating BTC (BTC futures increase) and Hive mining company’s hash rate increase are supporting market resilience. The Bithumb incident may accelerate post-quantum security discussions (BIP-360: 7-year transition).
Source: https://en.coinotag.com/bithumb-btc-error-lawmaker-pressure-on-fsc
