Bithumb (founded in 2014) is a South Korean cryptocurrency exchange. It offers a wide range of services including spot trading, automated trading, staking, and crypto-based payment solutions.^[5]​^[1]​

Overview

As of 2026, Bithumb is operated by Bithumb Corp. under CEO Lee Jae-won.^[5] Bithumb positions itself as a leading exchange in Korea, citing data for new user sign-ups in 2024 and customer reputation research from 2025.^[5] As one of South Korea's largest exchanges, it ranked second in domestic trading volume behind Upbit as of March 2026.^[9] The exchange offers a mobile application and operates an in-person customer service center in Seoul, the "Bithumb Lounge."^[5]​

Bithumb Market Index (BTMI) is an index that provides an overall view of the price changes in the virtual asset market. It is calculated based on all virtual assets listed in the Bithumb Exchange. Calculations are made based on the daily trade volume and real-time prices of virtual assets. The market-cap-weighted method is applied to calculate and announce in real-time.

Bithumb Global was founded in May 2019. It is an international cryptocurrency exchange based in South Korea and registered in Seychelles. Bithumb Global has grown quickly, with a reported $100M in trading activity on a daily basis. In terms of privacy, Bithumb doesn't provide any anonymity due to the South Korean government's requirement to require identity verification for cryptocurrency trading.

Partnerships

In April 2026, Bithumb signed a Memorandum of Understanding (MOU) with Circle, the issuer of the USDC stablecoin, to strengthen South Korea's digital asset infrastructure.^[10]​

History

Bithumb was founded in 2014 in Seoul, South Korea.^[1] Throughout its history, the exchange has faced significant security incidents and regulatory scrutiny, alongside corporate developments.

Corporate Developments and IPO Plans

In October 2018, BK Global Consortium signed a deal to purchase a majority share of BTC Holding Co., Bithumb's largest investor, though the deal ultimately did not close.^[6]​^[2] In response to declining trading volume and profits in 2018, 30 out of 340 total employees at Bithumb were laid off. The company announced a net loss of KRW205.5 billion (US$180 million) for 2018, a sharp turnaround from its profit in 2017.^[4]​

On January 22, 2019, OTC-listed holding company Blockchain Industries agreed to sign a binding letter of intent to partner with Bithumb to form a new publicly traded entity called the Blockchain Exchange Alliance (BXA). The objective was to make BXA the first major cryptocurrency exchange to go public on a U.S. stock exchange. This plan did not materialize and led to subsequent legal issues.

In September 2024, it was reported that Bithumb was considering a listing on the U.S. Nasdaq stock exchange. An official stated that "all possibilities are open, not only domestically but also overseas," after the company had previously appointed Samsung Securities in late 2023 to manage a planned IPO on South Korea's Kosdaq market for 2025.^[11]​

To prepare for a public listing, Bithumb announced a corporate restructuring plan in April 2025, which took effect in July 2025. The company split into two entities: "Bithumb Korea," to operate the core crypto exchange business, and "Bithumb A," a new company to manage venture investments and new business initiatives.^[12]​

Services

As of 2026, Bithumb provides a comprehensive suite of digital asset services for both retail and corporate clients.^[5]​

Trading

The platform offers spot trading in South Korean Won (KRW) and BTC markets. To assist users, assets are categorized by themes such as Layer 1, AI, DePIN, and DeFi. In April 2026, the exchange launched a "Portfolio Purchase Service" allowing users to invest in multiple assets simultaneously with a single order. Bithumb also provides an auto-trading service with automated strategies and bots, including an arbitrage bot.^[5][10]

Yield and Rewards

Bithumb offers several services for users to earn returns on their crypto assets:

• Staking: Users can earn interest on supported Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) cryptocurrencies.
• Lending Plus: A service that allows users to lend their digital assets to earn returns.
• Membership Program: A tiered rewards program for active users and high-volume traders, including a VIP Matching Program.^[5]

Payments and Other Services

• Bithumb Cash: This feature converts a member's total assets into a KRW value that can be used for payments and transfers. The service facilitates payments at partner businesses, including e-commerce sites and physical stores, using QR codes or barcodes via the Bithumb mobile application.
• Bithumb Lounge: An offline, physical customer service center located in Gangnam, Seoul, for in-person support and consultation.
• Bithumb BIZ: A dedicated service portal for corporate clients.
• Open API: An API for developers to integrate with the Bithumb platform for automated trading and other functions.^[5]

Incidents and Legal Issues

Security Breaches

• June 2017: Hackers stole user information and funds from a Bithumb employee's personal computer, affecting over 30,000 users.
• June 2018: About $32 million worth of cryptocurrency was stolen from Bithumb by hackers from its hot wallet. The exchange suspended services and compensated affected users.^[6]
• March 2019: The exchange reported another security incident, with over $10 million worth of EOS and Ripple (XRP) tokens stolen. Bithumb stated the incident was likely the work of insiders.

Legal Issues and Investigations

In September 2020, the Seoul Metropolitan Police Agency raided Bithumb's offices as part of a fraud investigation related to the BXA token. Bithumb's former chairman, Lee Jung-hoon, was acquitted of fraud charges in January 2023, though prosecutors later appealed the verdict.^[7] In February 2023, Kang Jong-hyun, reported to be the de facto owner of the exchange, was arrested on charges of embezzlement and stock market manipulation.^[7]

February 2026 Erroneous Payout

On February 6, 2026, Bithumb experienced a major operational failure during a promotional event. The exchange had intended to airdrop 2,000 KRW (approx. $1.37) to certain users but a system error caused it to accidentally distribute 620,000 Bitcoin, valued at over $43 billion at the time, to hundreds of accounts.^[8][13]

Bithumb responded within 35 minutes by restricting trading and withdrawals for the affected accounts. By the next day, CEO Lee Jae-won issued a public apology, confirming that 99.7% of the mistakenly sent funds had been recovered. The remaining 0.3% (1,788 BTC) were sold by recipients before they could be reclaimed; Bithumb covered these losses with company reserves. In April 2026, Bithumb began legal action to recover 7 BTC from users who refused voluntary return. Following the incident, South Korea's Financial Services Commission (FSS) mandated that all domestic crypto exchanges reconcile their ledgers with actual asset holdings every five minutes. A Bithumb spokesperson also stated the company's IPO plans would be delayed until 2028.^[8][13]

March 2026 Regulatory Sanctions

In March 2026, South Korea's Financial Intelligence Unit (FIU) imposed a fine of 36.8 billion won (approx. $24.6 million) on Bithumb and ordered a six-month partial suspension of operations. The sanctions were for violations of the "Act on Reporting and Using Specified Financial Transaction Information," South Korea's anti-money laundering (AML) law. The suspension only affects services for newly registered users, with existing customers able to continue trading and moving funds. The FIU identified approximately 6.65 million violations, including 3.55 million failures in customer identity verification (KYC), during on-site inspections conducted between 2024 and 2025. In addition to the corporate penalties, Bithumb's CEO received a reprimand warning.^[14]

Security

Bithumb implements multiple security measures and complies with regulatory requirements. All user accounts must undergo identity verification, and anonymous accounts are not permitted.^[3] In February 2026, Bithumb became the first virtual asset exchange in South Korea to implement a Quantum-Resistant Cryptography (PQC) security system to prepare for threats from quantum computing.^[10]

The exchange holds several security and management certifications. Its Information Security Management System & Personal Information (ISMS-P) certification was renewed with validity from December 18, 2025, to December 17, 2028. Bithumb also maintains multiple ISO/IEC certifications, including:

• ISO/IEC 27001 (Information Security Management)
• ISO/IEC 27701 (Privacy Information Management)
• ISO/IEC 22301 (Business Continuity Management)
• ISO/IEC 27017 (Cloud Security)
• ISO/IEC 27018 (Public Cloud PII Protection)^[5]