Bithumb Under Fire for AML Violations, CEO Faces Disciplinary Action

South Korea's Financial Intelligence Unit (FIU) has taken strict measures against Bithumb, imposing a six-month partial suspension on the exchange due to anti-money laundering (AML) violations. The entity has also notified the company of disciplinary action against its CEO, Lee Jae-won.

The suspension follows industry troubles, including a significant mistake where Bithumb mistakenly transferred 620,000 Bitcoin, valued at approximately $40 billion-$60 trillion KRW. According to reports, the exchange reconciles its books with actual crypto assets only once a day, which led to the error.

As a result of the incident, Bithumb's CEO is facing disciplinary action from regulatory authorities. Lee Jae-won admitted to the National Policy Committee that the exchange reconciles its virtual currency holdings and circulation volume daily. The regulator's move aims to improve compliance in the country's crypto industry.