ChainCatcher report, according to The Korea Times, Bithumb, South Korea’s second-largest cryptocurrency exchange, is persisting in pushing for the reappointment of current CEO Lee Jae-won despite a series of controversies and regulatory penalties. On February 6, 2026, during a promotional campaign, Bithumb suffered a severe operational error that resulted in the erroneous distribution of approximately 15 times the platform’s actual Bitcoin holdings—totaling around 620,000 BTC—revealing critical flaws in its internal verification, asset management, and ledger systems. The error was detected and contained within 35 minutes; the exchange froze transactions and withdrawals for 695 affected accounts and claimed to have recovered 99.7% of the misissued assets, though the incident still triggered brief market panic. The Financial Intelligence Unit (FIU), under South Korea’s Financial Services Commission, imposed multiple penalties on Bithumb, including a six-month suspension of certain business operations, a KRW 36.8 billion (approximately $24 million) fine for anti-money laundering violations, a warning to CEO Lee Jae-won, and a six-month suspension of the reporting officer. Lee Jae-won’s term as CEO is set to expire this month, and the company plans to hold its annual general meeting on March 31 to consider a proposal extending his term by two additional years. Despite the major incident and regulatory pressure, Bithumb has opted to proceed with his reappointment to maintain operational continuity and stability rather than undertake a management overhaul. In similar past cases—such as when Upbit’s CEO transitioned to an advisory role after receiving an FIU warning—management typically faced greater accountability.
Bithumb Pushes for Re-election of CEO Lee Jae-won Amid Regulatory Scrutiny
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Summary
Bithumb is seeking to re-elect CEO Lee Jae-won amid a regulatory crackdown in South Korea. The exchange plans to extend his term at the March 31 shareholders’ meeting. Despite a 620,000 BTC error in February 2026 and a six-month partial suspension, the company is pursuing stability. A 368 billion KRW AML fine followed the incident. The move reflects ongoing challenges under tightening regulatory policies.
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