Political parties in South Korea are criticizing Bithumb for a colossal mistake where they erroneously credited customers with 60 trillion won worth of Bitcoin that they did not possess.
The recent incident at the South Korean cryptocurrency exchange Bithumb, where a clerical error led to the overpayment of 60 trillion won worth of Bitcoin to customers, has sparked significant criticism from political figures in the country. Kim Ji-ho, a spokesperson for the ruling Democratic Party, highlighted that this catastrophic failure illustrates structural flaws in the exchange's internal controls and accounting systems. Kim emphasized the serious implications of using non-existent assets in trading, leading to market volatility and investor confusion, stressing that such systemic issues threaten the market's sustainability.
Furthermore, Na Kyung-won, a member of the opposition People Power Party, reinforced concerns about the incident not being a mere accident but indicative of deeper structural defects within cryptocurrency exchanges. Na pointed out that if exchanges operate by merely transferring internal ledger figures without actual asset movement on the blockchain, they jeopardize investors' assets and could lead to broader financial instabilities, such as bank runs or complete market collapses. Her comments reflect a growing alarm regarding investor protection in the volatile crypto market.
In light of this crisis, both political parties are advocating for swift regulatory actions to address the rampant issues within the cryptocurrency trading system. Calls for thorough investigations by financial authorities have arisen, with demands for essential reforms such as mandatory asset-linked order systems to prevent similar occurrences in the future. This incident underscores the urgent need for a robust regulatory framework as the digital asset market continues to evolve in South Korea, balancing innovative growth with necessary investor protections.
