Bithumb 's BTC payment erroneous scandal has made partner banks hesitant to renew contracts.

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Bithumb experienced a unit error that resulted in the wrong distribution of BTC to event winners, leading partner banks in South Korea to scrutinize the renewal of real-identified account contracts.

This development has reportedly led KakaoBank (Coinone's partner) and K-Bank ( Upbit's partner) to closely assess the risks of renewal, while KB Kookmin Bank ( Bithumb's partner) is requesting enhanced internal controls ahead of next month's renewal.

MAIN CONTENT
  • The incident at Bithumb was due to a system error, incorrectly distributing BTC to event winners.
  • KakaoBank and K-Bank are considering renewing their real-identified account contracts.
  • KB Kookmin Bank is requiring stricter internal controls before renewing its contract next month.

Impact on real-identified account contracts

Partner banks of cryptocurrency exchanges in South Korea are carefully XEM renewing real-name account contracts following the erroneous BTC distribution incident at Bithumb.

According to reports from foreign media, KakaoBank (Coinone's partner) and K-Bank ( Upbit's partner) are carefully evaluating and considering renewing contracts related to real-identity accounts.

This review stems from operational risks and the potential for reputational damage in the event of incorrect distribution of Cryptoasset , especially given that real-identified accounts are a crucial infrastructure for users to trade on exchanges.

Demand for stricter internal controls at Bithumb.

KB Kookmin Bank is requiring Bithumb to strengthen its internal controls as a condition before renewing its contract next month.

KB Kookmin Bank, which is also a partner of Bithumb, reportedly requested increased internal controls before renewing the contract next month, due to concerns about potential reputational risks.

The incident was described as a unit error resulting in the erroneous distribution of BTC to the event winner. The main concern raised was the potential for reputational risk to spill over to the bank, making governance and operational control standards central to the renewal negotiations.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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