Bithumb targets 2028 IPO after February Bitcoin crediting error

Bithumb's listing push comes as rival South Korean exchanges deepen ties with traditional finance and technology groups. Mirae Asset Consulting took control of rival exchange Korbit on July 23. Upbit operator Dunamu is pursuing a share-swap deal that would make it a wholly owned subsidiary of Naver Financial, subject to regulatory and shareholder approval.

In a February promotional error, Bithumb mistakenly credited customer accounts with balances totaling 620,000 Bitcoin instead of distributing 620,000 Korean won in cash rewards. Bithumb recovered 99.7% of the erroneous credits, though customers sold about 1,788 BTC before accounts were frozen.

At a Feb. 11 National Assembly parliamentary hearing, Bithumb CEO Lee Jae-won said the exchange's process for checking the planned distribution against its actual holdings had failed and that the promotional amount had not been earmarked in a separate account.

Its IPO preparations also come as two Bithumb-linked listed companies face continuing audit and listing problems. Vidente, a major Bithumb shareholder, and Bucket Studio, which indirectly controls Vidente, have had trading in their shares suspended since March 2023 over audit and other listing issues.

Bucket Studio appointed a former police official as its standing auditor in June, while Vidente plans to appoint a former National Tax Service official to the same role, according to Yonhap news agency. South Korea's Government Public Service Ethics Committee cleared both hires after finding no close relationship between the officials' previous duties and their new roles.