South Korea's second-largest cryptocurrency exchange, Bithumb, is pressing forward with its long-delayed plans to go public, even as it navigates a regulatory fine, a partial suspension, and an accidental Bitcoin payout once valued at approximately $43 billion.

According to Bithumb CFO Jeong Sang-gyun, the company is currently in a preparatory phase and has signed an IPO advisory agreement with Samjong KPMG that runs through 2027. Samsung Securities has been appointed as lead manager for the planned listing on KOSDAQ, South Korea's tech-focused stock market. A successful listing would make Bithumb one of the few major digital asset exchanges to go public on an Asian securities exchange, a milestone that has proven elusive for crypto platforms globally due to persistent regulatory and compliance hurdles.

The exchange's IPO timeline has shifted repeatedly. Bithumb initially targeted 2025 for its public debut, then pushed the date to 2027. The company now states that the listing will "highly likely take place after 2028."

Bithumb has communicated to shareholders that it is implementing measures to strengthen internal controls and financial transparency—a move widely interpreted as an effort to reassure potential investors wary of the risks associated with the exchange's recent controversies.

Accidental Bitcoin Payout

In early 2026, Bithumb suffered a significant operational error during a promotional "Random Box" event. A staff member mistakenly entered Bitcoin as the payment unit instead of South Korean won. The system consequently credited users with 620,000 BTC—worth roughly $43 billion at the time—far exceeding the approximately 46,000 BTC the exchange actually held in reserve.

Bithumb reported that it recovered nearly all of the misallocated funds and established a company-wide task force to prevent similar incidents. Nevertheless, the episode damaged investor confidence: the price of BTC on Bithumb briefly dropped 15% as panicked users sold their holdings. The exchange subsequently pledged to compensate affected traders at approximately 110% of their losses. The incident underscored long-standing concerns about operational risk management at crypto exchanges, an issue that has drawn scrutiny from regulators worldwide following high-profile failures at other platforms.

Regulatory Penalties and Legal Challenge

The Financial Intelligence Unit (FIU), the anti-money-laundering body under South Korea's Financial Services Commission (FSC), imposed a 36.8 billion won fine (about $25 million) and a six-month partial suspension on Bithumb. Regulators cited the exchange's failure to verify user identities in more than 6.65 million cases.

Separately, the Financial Supervisory Service (FSS) launched an investigation into Bithumb's ledger and risk management controls to determine whether they aligned with the assets deposited by users.

Bithumb contested the suspension in court. On May 1, 2026, the Seoul Administrative Court's 2nd Administrative Division granted a stay of execution, allowing the exchange to continue normal operations pending a final ruling. The company stated it intends to "faithfully present" its case and is reportedly considering a legal challenge to the fine as well.

Governance Overhaul and Transparency Measures

In response to the regulatory scrutiny, Bithumb has proposed a series of governance reforms. After the FSS flagged what it called "complacent supervision," the exchange announced plans to appoint Sogang University tax expert Jung Yeon-dae as its new auditor.

Bithumb has also established a 100 billion won (approximately $68 million) user protection fund designed to cover any future incidents. At its March 31 shareholders' meeting, the board secured approval to double its bond issuance ceiling to 300 billion won as part of efforts to bolster liquidity ahead of a listing.

Financially, the exchange reported approximately 651 billion won ($430 million) in 2025 revenue, with a net profit near $51 million and a domestic market share exceeding 30%. However, that market share has since declined as trading volumes across South Korea contracted in 2026.

Brokerage Interest and Regulatory Shifts

Bithumb is also attracting interest from major South Korean brokerages. Kiwoom Securities has been in talks to acquire newly issued shares through a third-party allotment, while Samsung Securities, Mirae Asset, and Korea Investment & Securities are also pursuing equity stakes.

This interest aligns with proposed regulatory changes that would grant licensed securities firms a greater role in the digital asset sector, as well as an FSC plan to cap major-shareholder equity in exchanges. Bithumb Holdings currently controls approximately 73% of the exchange—a stake that may need to be reduced if the proposed cap takes effect. Such a reduction would mark a significant ownership restructuring and could open the door to the kind of diversified institutional backing that public market investors typically expect from a KOSDAQ-listed company.