The Financial Intelligence Unit (FIU) of South Korea has recently imposed a fine of 36.8 billion won (approximately $24.6 million) on the cryptocurrency exchange Bithumb and mandated a six-month partial suspension of new-user services. This decision follows the discovery of extensive violations related to anti-money laundering (AML) regulations, as reported by local news sources.
The FIU’s investigation revealed approximately 6.65 million infractions concerning the nation’s AML and customer verification protocols. Among these violations, around 3.55 million were related to failures in verifying customer identities, while the remaining 3.04 million pertained to transactions that were not properly blocked.
Additionally, the investigation uncovered 45,772 transactions linked to 18 unregistered foreign exchanges.
The sanctions further entail a reprimand directed at Bithumb’s CEO and a suspension for the exchange’s reporting officer lasting six months. Notably, existing customers will continue to have the ability to trade, while the restrictions will predominantly impact new user account activities, including deposits and withdrawals.
Bithumb, established in 2014, ranks among South Korea’s largest exchanges by trading volume. This fine represents the largest penalty imposed on a virtual asset exchange in the country, slightly exceeding the 35.2 billion won sanction levied against Upbit in 2025.
The infractions were identified during in-person inspections of the five largest cryptocurrency exchanges in South Korea, conducted between 2024 and 2025.
Regulatory authorities have underscored the importance of stringent compliance with customer verification and AML obligations, emphasizing that such measures are vital for sustaining market trust.
Bithumb’s Bitcoin Misstep
This announcement follows an incident in which Bithumb unintentionally distributed billions of dollars worth of Bitcoin to users during a promotional event just weeks prior. The exchange had intended to provide modest cash rewards through a “Random Box” initiative, timed for approximately 6 p.m. local time, where winners were to receive between 20,000 and 50,000 Korean won.
Regrettably, it appears that staff erroneously entered the payment unit as Bitcoin instead of won. Consequently, certain users reportedly received as much as 2,000 BTC each, approximating a value of 196 billion won per person based on market prices around 98 million won per Bitcoin at that time, as depicted in various social media screenshots and accounts.
This operational blunder momentarily led to a drop in Bitcoin prices on the platform, falling over 10% below broader market levels. Bithumb, however, has asserted that the incident did not result in any financial losses for customers.
The FIU is set to finalize the penalty after allowing Bithumb a minimum of 10 days to present its position.
Authorities have indicated that this enforcement action reflects a continued effort to tighten oversight of the cryptocurrency market in South Korea.
As of this writing, Bitcoin is trading at nearly $74,000.
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