Bithumb has been granted temporary relief by a South Korean court, delaying a six-month suspension amid ongoing legal proceedings. The Seoul Administrative Court approved a stay of execution on April 30, allowing the crypto exchange to continue limited operations while it challenges a $45 million fine imposed for compliance failures. The Financial Intelligence Unit cited 6.65 million violations, including customer verification lapses and transactions with unregistered operators.
In a separate issue, Bithumb faces legal scrutiny following a significant Bitcoin distribution error during a promotional event. On February 6, an internal error mistakenly distributed 2,000 Bitcoins to each participant instead of small rewards, causing market chaos and a temporary 17% drop in Bitcoin prices on the platform. Bithumb has initiated a compensation plan to address user losses, but legal evaluations continue as the exchange navigates overlapping regulatory and operational challenges.
Bithumb Secures Temporary Court Relief Amid $45M Fine and Legal Challenges
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