South Korean cryptocurrency exchange Bithumb has admitted to a serious flaw in its internal system, resulting in the erroneous transfer of 620,000 bitcoins to users instead of the intended 620,000 won. The error caused a 17% drop in the price of bitcoin on the Bithumb platform and prompted an investigation by the Financial Supervisory Service of South Korea, exposing deficiencies in the exchange's asset matching and account segregation controls. Bithumb CEO Lee Jae-won stated that the incident was primarily due to a 24-hour delay in transaction processing and a lag in updating cryptocurrency holdings. While the exchange has recovered most of the bitcoins, 1,786 bitcoins sold before the accounts were frozen remain unrecovered. South Korean lawmakers have expressed concern about the lack of effective regulation in the country's virtual asset market, especially given that South Korea has 10 million cryptocurrency investors, making it one of the most active cryptocurrency markets globally. (Coindesk)