South Korea Tightens Crypto Rules After $42B Error

[nihalsari]

Financial Services Commission has introduced strict new regulations requiring crypto exchanges to verify user balances every five minutes. The move follows a major incident where Bithumb mistakenly distributed 2,000 BTC per user instead of a small promotional reward—resulting in a staggering $42 billion error.

The incident exposed serious weaknesses in exchange systems, including delayed reconciliation processes and lack of safeguards. Regulators responded with emergency inspections, uncovering widespread operational risks across multiple platforms and prompting immediate reform.

[ed]

casually sending everyone 2,000 btc, just a minor accounting slip