Bithumb Wins Temporary Court Relief as $45M Fine and Lawsuit Pressure Mount

• Bithumb avoids suspension as court delays enforcement amid regulatory pressure
• Massive Bitcoin error triggers market chaos and sparks legal concerns
• Compensation efforts continue while legal risks and scrutiny steadily increase

A South Korean court has paused a major regulatory sanction against crypto exchange Bithumb, allowing the platform to continue limited operations while legal proceedings move forward. According to the report, the Seoul Administrative Court approved a stay of execution on April 30, effectively delaying a six-month suspension that had already been scheduled to take effect. Consequently, the enforcement measure will remain inactive until the court delivers a final judgment on the matter.

Bithumb filed the request alongside an administrative lawsuit challenging the Financial Intelligence Unit’s enforcement order, aiming to overturn penalties tied to multiple compliance failures identified by regulators. Moreover, the exchange is seeking to protect its operational continuity during a period of heightened regulatory pressure.

Authorities cited approximately 6.65 million violations under the Specific Financial Information Act, including failures in customer verification processes and breaches involving transactions with unregistered virtual asset operators. Additionally, regulators imposed a fine totaling 36.8 billion won, which significantly increased the financial burden on the platform.

However, the court’s decision provides temporary relief, allowing Bithumb to maintain certain services while it prepares its legal defense against the allegations. At the same time, the case reflects broader regulatory tightening across South Korea’s digital asset sector, where compliance expectations continue to rise.

Also Read: Cardano Volume Explodes 28% as Traders Brace for Massive Price Move

Bitcoin Distribution Error Deepens Legal Risks

Separately, Bithumb faces growing legal pressure linked to a major operational error involving Bitcoin distribution during a promotional campaign earlier this year. According to the report, the incident occurred on February 6 when the exchange attempted to distribute small rewards worth 2,000 won to event participants.

Instead of issuing modest rewards, an internal system error resulted in 2,000 Bitcoins being transferred to each eligible user, creating a massive unintended distribution. With Bitcoin priced near 98 million won at the time, the total misallocation reached approximately 62 trillion won, highlighting the scale of the incident.

Consequently, the unexpected distribution triggered immediate market disruption, as users rushed to sell the mistakenly received assets, leading to intense trading activity within a very short period. Moreover, Bitcoin prices on Bithumb dropped to around 81.11 million won during the event, reflecting a roughly 17% discount compared to other exchanges.

Additionally, the sell-off lasted for about 10 minutes, yet it created significant price dislocation and trading imbalances that affected a large number of users. As a result, some participants reported financial losses linked to rapid price swings during that period.

Compensation Plan and Legal Review Continue

In response to the incident, Bithumb introduced a compensation plan designed to cover 100% of user losses while also providing an additional 10% payment as part of its remediation efforts. Besides, the exchange offered fixed payments of 20,000 won to users who were logged in during the affected window, along with reimbursements for trades executed during that time.

However, legal experts continue to evaluate potential claims arising from the incident, including cases involving emotional distress and financial damages suffered by affected users. A Seoul-based law firm confirmed receiving multiple inquiries related to the event, although the number of cases has not yet reached the threshold required to initiate a formal class action lawsuit.

Bithumb now faces overlapping legal challenges involving both regulatory enforcement and operational accountability, creating uncertainty around its long-term position in the market. While the court’s intervention provides temporary relief, the final outcome of these cases will likely shape the exchange’s future trajectory.

Also Read: Wasabi Protocol Hack Exposes $5M Loss in Multi-Chain DeFi Attack

The post Bithumb Wins Temporary Court Relief as $45M Fine and Lawsuit Pressure Mount appeared first on 36Crypto.