An emergency response team has been mobilized by Korean financial authorities to address the large-scale 'over-distribution incident' involving Bitcoin at the cryptocurrency exchange Bithumb. This incident occurred when the exchange mistakenly distributed 2,000 Bitcoin worth approximately 197 billion won to 695 event participants instead of the intended monetary amount. The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) held an urgent meeting to assess the situation and discuss compensation measures, emphasizing the vulnerability and risks associated with virtual assets.

During the emergency meeting, FSC Vice Chairman Kwon Dae-young expressed deep concern over the incident, urging the FSS to carefully monitor user losses and ensure Bithumb swiftly implements compensation measures. Following the error, Bithumb identified the mistake just 20 minutes after it occurred and promptly froze the affected accounts to prevent further transactions. As of the latest reports, Bithumb managed to recover 99.7% of the over-distributed Bitcoin, although a small portion had already been sold.

In response to this incident, the authorities established a joint emergency response team which will not only investigate Bithumb's case but also examine the practices and internal control systems of other exchanges. The financial authorities plan to implement regular audits of cryptocurrency asset holdings by service providers and establish regulations to hold operators liable for user damages even without evidence of their fault, aiming to enhance overall consumer protection in the virtual asset sector.