South Korean regulators stated that the Bithumb erroneous Bitcoin incident exposed systemic risks, and users who had already sold the relevant Bitcoins are legally obligated to return them.

The Financial Supervisory Service (FSS) of Korea stated that the recent Bitcoin misissue incident at Bithumb highlights the systemic vulnerabilities in the cryptocurrency sector, necessitating further strengthening of regulatory rules. FSS Director Lee Chan-jin pointed out at a press conference that the incident reflects structural problems in the electronic system for virtual assets, and regulators are conducting a focused review of this issue and will incorporate related risks into subsequent legislation to promote the inclusion of digital assets within a more comprehensive regulatory framework. The report states that Bithumb mistakenly distributed over $4 billion worth of Bitcoin to users during a promotional campaign, triggering a short-term sell-off on exchanges. Preliminary investigations by regulators show that 99.7% of the approximately 620,000 mistakenly distributed Bitcoins have been recovered, and approximately 93% of the approximately 1,786 Bitcoins already sold have been recovered. The FSS also stated that users who sold the relevant Bitcoins have a legal obligation to return them. Furthermore, Lee Chan-jin stated that before discussing policies such as launching a Bitcoin spot ETF, fundamental issues such as "ghost coins" must be addressed first, and market stability must be ensured. The South Korean government previously introduced the Virtual Asset User Protection Act in July 2024 and plans to expand the scope of regulation for digital assets through further legislation. (Reuters)