South Korea’s FSS urges Bithumb users to return ‘ghost Bitcoin’

Governor of the Financial Supervisory Service (FSS), Lee Chan-jin, on Monday urged Bithumb users to return the assets the exchange accidentally sent during the ‘ghost Bitcoin’ incident. South Korea’s second-largest cryptocurrency exchange revealed that it has yet to recover approximately 13 billion Korean won worth of Bitcoin.

Lee said during the agency’s 2026 policy agenda press briefing that users won’t be at fault if they confirmed with the exchange that they received the Bitcoin. He also warned that users who sold and liquidated Bitcoin without Bithumb’s confirmation would be obligated to return the original asset.

South Korea’s watchdog seeks to address ledger system issues

The FSS head stated that the case falls under the scope of unjust enrichment requiring restitution. He explained that the exchange explicitly stated it would issue Bitcoin equivalent to 2,000 Korean won, but accidentally distributed 620,000 Bitcoin(~$44 billion) to hundreds of users during the firm’s recent promotional event.

Lee revealed that the agency is discussing regulatory frameworks to address issues with ledger systems. He added that the FSS is also incorporating unresolved problems into licensing risks.

Lee also stated that the agency’s inspection findings would inform the second phase of the User Protection Act. He argued that there is a need to strengthen the regulatory and supervisory framework of digital assets as they get incorporated into the legacy financial system.

The FSS is planning to inspect internal controls at other crypto exchanges. Lee said the initiative aims to create an environment where users can trade with confidence.

He also spoke about spot-based crypto ETFs, noting that the interconnection between virtual assets and legacy finance triggers cascading effects when one side falters. He said the public cannot transact if legacy finance is not stabilized.

FSS focuses its inspection capacity on high-risk incidents

Lee also revealed that the third disciplinary review committee will convene this week. The meeting will be about the incomplete sales of Hong Kong stock-linked securities (ELS) by banks. The FSS head said the agency plans to proceed with caution and thoroughness due to the significant consumer impact.

The FSS is also investigating allegations of sanctions against MBK partners, especially those related to electronic short-term bonds (ABSTB). Lee confirmed that the FSS’s disciplinary committee is currently reviewing the findings and proposed measures of the investigation. He also stated that the process is taking time due to legal issues and statements from MBK and involved executives.

Lee revealed that the FSS is working to ensure its sanctions do not disrupt licensing for integrated investment accounts (IMA) and issuers. He also stated that the FSS’s mandate is to verify information and the appropriateness of loans for Coupang-related inspections. Coupay was under scrutiny late last year due to customer financial data leaks, and Coupang Financial in January due to the appropriateness of seller loans.

Lee also confirmed that discussions with the Financial Services Commission about the FSS’s special judicial police were over. He revealed that both agencies agreed to grant investigative authority to the FSS’s capital market special judicial police. The agency will introduce new measures for illegal private financing.

The FSS and the FSC also agreed not to grant such authority in areas like accounting audits or financial company inspections. Both agencies implemented strict controls to prevent excessive investigative power. The FSS’s capital market special judicial police will include prior deliberation by the Securities and Futures Commission’s investigation committee before stating any investigations.

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