Financial Supervisory Service Governor Lee Chan-jin (이찬진) said on Feb. 9 that Bithumb’s mistaken large-scale payout of bitcoin was a case that "clearly showed the structural problems in virtual asset exchanges’ information systems."

Lee said it would be difficult to bring virtual asset exchanges into the regulated system unless the issue is resolved. He made clear it should be regulated under the Digital Asset Basic Act, a second-stage virtual asset bill.

Lee made the remarks at a briefing and news conference on the watchdog’s 2026 work plan held at its headquarters in Yeouido, Seoul, earlier in the day.

He said he was "particularly concerned" about computer systems where erroneous entries are possible. He said the incident exposed a fundamental problem in the information systems of virtual asset exchanges.

He stressed that "the essence of the problem is that transactions were executed based on incorrectly entered data."

He said he wondered whether the virtual asset market could be brought into the regulated system without resolving information system problems in any form. He said a regulatory and supervisory framework was needed that could create licensing risks for exchanges if the issue is not addressed.

Lee said tasks that must be strongly reinforced during second-stage virtual asset legislation had been identified by reflecting the results of inspections into the Bithumb incident.

He also clearly stressed that bitcoin paid out by mistake is subject to return.

Lee said Bithumb had clearly notified users it would pay prize money of 2,000 won per person through a "random box" event. He said it was clear the return of unjust enrichment applied and that there was no room for dispute that it is subject to return, with in-kind return as the principle.

He also described investors who sold the wrongly paid coins to cash out as being in a "disastrous situation."

This is interpreted as because bitcoin prices have risen since the time they sold the wrongly paid coins, requiring large additional costs when returning the assets in kind.

Lee said some people do not have to return the assets in kind. He introduced a case of an investor who checked whether the wrongly paid coins had in fact been sent by Bithumb, and said the rest would face responsibility issues to the end.

Asked by reporters whether the watchdog could have prevented the Bithumb incident, Lee said fewer than 20 people are in charge and even those are largely focused on second-stage virtual asset legislation, disclosing limitations in staffing structure.

[Yonhap]