Eun Chan-jin, the head of the Financial Supervisory Service (FSS), commented on the recent overpayment incident involving Bithumb, where the exchange mistakenly paid out a massive amount of 'ghost Bitcoins' as part of an event reward. This event highlighted significant structural flaws within the cryptocurrency trading system, and Eun called for a comprehensive overhaul of the regulatory framework governing such exchanges in South Korea. He expressed concern that without addressing these issues, the legitimacy and safety of cryptocurrency markets may be jeopardized, especially concerning regulatory approval processes.

The incident, which occurred when Bithumb intended to distribute rewards of 2,000 won to users but mistakenly credited them with 2,000 Bitcoins instead, resulted in an erroneous distribution of over 620,000 Bitcoins, far exceeding Bithumb's actual reserves. Following the discovery of this mistake, the FSS initiated on-site inspections to examine the situation at Bithumb and other exchanges to assess their practices and compliance under existing regulations. Eun pointed out that similar structural risks could emerge again unless there are significant reforms in the regulatory standards that govern cryptocurrency exchanges.

Eun Chan-jin further indicated that there may be legal grounds for imposing sanctions on Bithumb despite the current legal framework's limitations regarding such overpayment incidents. He noted that there are obligations under the cryptocurrency user protection law that require exchanges to hold the actual cryptocurrencies deposited by their customers. He asserted that the incorrectly paid Bitcoins should be returned, emphasizing that Bithumb's prior announcement about the rewards program made it clear that the recipients are entitled to return the unreasonable gains. This incident not only raises questions about the operational integrity of crypto exchanges but also highlights the urgent need for regulatory attention on user protection and compliance in the cryptocurrency market.