Strengthening the internal control system and establishing measures to prevent recurrence
Establishment of a 100 billion won customer protection fund and implementation of a one-week fee-free service.
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To prevent the recurrence of similar incidents, Bithumb plans to implement a management-led "company-wide crisis management system." Led by management, all business divisions will work together to address the incident. Furthermore, Bithumb plans to strengthen its internal management system, prioritizing customer asset protection and transaction stability as core values.
In addition, a dedicated "Investor Damage Relief Organization" will be established to manage affected customers and facilitate a more expedited and responsible compensation process. Furthermore, the company plans to share the progress of the incident and the status of its response through interim board reports, and sequentially implement follow-up measures, including measures to prevent recurrence.
To prevent recurrence of incidents at the source, Bithumb has also initiated improvements to its systems and operational processes. This includes strengthening the system for cross-verifying customer assets and company assets during payment processes based on events and policies, and mandating a multi-approval process requiring at least two steps for asset transfers and reward payments.
Additionally, we will operate an AI system that detects and automatically blocks abnormal transactions 24 hours a day to immediately restrict transactions when abnormal transactions or figures are detected. We will also conduct a detailed external system inspection through a global security expert organization and disclose the results.
The company takes full responsibility for any customer losses that may arise as a result of this incident. While no direct losses to customer assets have been confirmed to date, some transactions were discovered to have been concluded under unfavorable terms due to the sharp drop in market prices around the time of the incident.
Accordingly, customers who sold at a low price due to the incident during the sell-off period will be compensated a total of 110%, including the full selling price and an additional 10% compensation. Furthermore, all customers accessing Bithumb during the affected period will receive compensation worth 20,000 won, and all customers will enjoy a one-week trading fee-free benefit.
Separately, to prepare for similar incidents in the future, the company plans to establish and operate a 100 billion won "Customer Protection Fund" on a permanent basis. The fund will be separately deposited and managed to ensure prompt customer protection in the event of an accident.
Lee Jae-won, CEO of Bithumb, said, "I feel a heavy sense of responsibility for this incident," and added, "We will prioritize customer trust over external growth and build a safer trading environment."
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
