Bithumb Acknowledges "Serious Flaw," Vulnerability to Potential Exploit in Internal System

BlockBeats News, February 11th. According to CoinDesk, Le Jae-won, CEO of the South Korean cryptocurrency exchange Bithumb, stated that due to a lack of proper internal controls, the platform mistakenly transferred over $40 billion worth of Bitcoin to a customer's account, while the intended amount was only around $428. Most of the funds have been recovered.

Bithumb acknowledged that a severe internal system flaw caused it to erroneously transfer around $40 billion worth of Bitcoin to customers. This error briefly caused a 17% Bitcoin price drop on the Bithumb platform and prompted an investigation by the South Korean Financial Supervisory Service, exposing deficiencies in the exchange's asset matching and account segregation controls.

Despite Bithumb having recovered most of the Bitcoin, 1,786 Bitcoin that were sold before the accounts were frozen remain unrecovered, exacerbating lawmakers' concerns about weak regulation.