FSS Issues Urgent Warning After Bithumb Bitcoin Transfer Error Triggers Scams

Highlights:

• FSS warns Bithumb users about scams after the Bitcoin transfer mistake.
• Scammers send fake messages that can steal personal data and funds.
• The regulator said customers should reset devices and report any suspicious activity to authorities.

The Financial Supervisory Service (FSS) in South Korea has issued a strong warning to customers of Bithumb after a major error involving Bitcoin transfers. The regulator highlighted that criminals are exploiting the incident by sending fraudulent compensation notices containing harmful links. Victims who click on these links risk downloading malicious applications that can steal personal information and digital assets.

FSS Warns of Fraud Following Bithumb Bitcoin Mix-Up

On February 12, local media reported that the FSS had flagged a surge in smishing scams targeting Bithumb users. The regulator explained that these scams are designed to trick people into believing they are receiving compensation for the recent Bitcoin transfer mistake.

Once the malicious software is installed, scammers gain access to sensitive data and funds. The FSS advised that anyone who accidentally installed such applications should immediately switch their device to airplane mode and reset it. Victims were also encouraged to report the matter to police stations for further investigation.

Bithumb Sends 620,000 Bitcoins to Customers by Mistake

On February 9, Bithumb accidentally sent 620,000 Bitcoins to customers, worth over $40 billion. An employee caused the error during a small bonus program for 655 customers. They entered the amount in Bitcoin instead of won, giving each account 2,000 BTC by mistake. The mistake briefly made normal customers crypto millionaires.

Bithumb froze trading and withdrawals for 695 accounts within 35 minutes and later recovered almost all the funds. After the incident, the FSS called an emergency meeting. Officials promised to investigate fully, and Bithumb said it would cooperate and focus on customer trust and safety.

🚨A simple typo, a $44B disaster.

A Bithumb employee intended to send 695 users a promotional reward of 2,000 KRW (~$1.40) but mistakenly entered the unit as Bitcoin.

Instead of a small coffee's worth of cash, users received 2,000 $BTC each, creating "ghost coins" worth 15x… pic.twitter.com/L6c7GLmtrW

— Conor Kenny (@conorfkenny) February 9, 2026

On February 9, FSS Governor Lee Chan-jin told customers to return the Bitcoin sent to them by mistake. He warned that anyone who sold the coins without Bithumb’s confirmation would have to give them back. Reports showed 86 users sold about 1,788 Bitcoins, some moving the money to their bank accounts.

Bithumb recovered 99.7% of the wrongly sent Bitcoins. The large sell-off caused Bitcoin prices on the exchange to drop more than 10% compared to other platforms. This sudden fall made some customers panic and sell their holdings, adding more pressure on the market. About 30 users who used their Bitcoin as collateral faced forced liquidations or margin calls. Bithumb later promised to refund panicked sellers 110% of their losses. The exchange also said it would compensate all users who logged in during the incident with 20,000 won, about $14, and temporarily waive trading fees.

Crypto Exchange Admits System Gaps During Parliamentary Hearing

On February 11, South Korean lawmakers questioned Bithumb’s CEO in Parliament. He admitted the exchange’s systems were weak, saying Bithumb checks its ledger against crypto holdings only once a day. This 24-hour gap lets errors go unnoticed and creates big risks. Lawmakers raised concerns about the exchange’s operations and called for stronger oversight. They asked how such a huge mistake could happen, and the CEO agreed Bithumb must improve its processes to prevent future errors.

South Korean lawmakers hauled in Bithumb’s CEO on Wednesday seeking answers over an erroneous $40 billion Bitcoin transfer triggered by human error, intensifying scrutiny of a crypto market that has eclipsed equities in retail participation https://t.co/OP3VVA1TVm

— Bloomberg (@business) February 11, 2026