South Korea’s Financial Intelligence Unit (FIU) has imposed a 36.8 billion won ($24.6 million) fine and a six-month partial suspension on Bithumb, one of the country’s largest cryptocurrency exchanges, for widespread anti-money laundering (AML) violations.
The sanctions follow a comprehensive investigation that uncovered 6.65 million breaches of AML and customer verification rules. Among these, 3.55 million cases involved failures to verify customer identities, while 3.04 million transactions should have been blocked but were processed. Authorities also identified 45,772 transactions with 18 unregistered overseas exchanges.
Regulatory Oversight Intensifies
The sanctions are part of an ongoing regulatory crackdown on South Korea’s top crypto platforms. The FIU’s investigation, which took place between 2024 and 2025, included on-site inspections of the country’s five largest crypto exchanges. Bithumb’s CEO has been reprimanded, and the exchange’s reporting officer faces a six-month suspension.
Existing Bithumb customers can continue trading, but the restrictions primarily affect new user account activity, including deposits and withdrawals. The fine is the largest ever imposed on a virtual asset exchange in South Korea, surpassing a 35.2 billion won penalty levied on Upbit in 2025.
Bithumb’s Recent Stumbles
The announcement comes just weeks after Bithumb suffered a significant operational error, accidentally distributing billions of dollars worth of Bitcoin to users during a promotional event. The exchange had intended to distribute small cash rewards through a “Random Box” event, but staff mistakenly entered the payment unit as Bitcoin instead of Korean won. Some users received at least 2,000 BTC each, worth approximately 196 billion won per person at the time. The error briefly caused Bitcoin prices on the platform to drop over 10% below broader market levels.
Bithumb stated that the incident did not result in any customer losses, but it highlights the exchange’s ongoing struggles with operational and compliance issues.
Implications for the Crypto Market
The FIU will finalize the fine after giving Bithumb at least 10 days to submit its opinion. Authorities emphasized that the enforcement action signals continued tightening of crypto market oversight in South Korea. Regulators have stressed the importance of strict compliance with customer verification and AML obligations to maintain market trust and integrity.
At the time of writing, Bitcoin is trading near $74,000, and the crypto community is closely watching how Bithumb will navigate these regulatory challenges. The incident serves as a stark reminder of the need for robust compliance measures in the rapidly evolving cryptocurrency landscape.
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