South Korean Regulators Begin Bithumb Inspections After Breach Report

South Korean financial regulators began on-site inspections of Bithumb on Wednesday, Oct. 28, after the exchange reported signs that an outside intrusion exposed employee information, prompting a review of possible customer impact.

The Financial Services Commission (FSC), Financial Supervisory Service (FSS) and Financial Security Institute launched the inspections after an emergency meeting with Bithumb and other industry and government representatives. The review centers on an employee-support system, not the core facilities used to process cryptocurrency trades.

Bithumb reported possible exposure of employee information connected to the exchange, its subsidiaries and partner companies. Whether customer information was exposed remains under investigation. No leak had been confirmed of wallet addresses or other information that could enable unauthorized payments or crypto transfers.

Bithumb detected the unauthorized access on Oct. 27 and reported it that day to the Korea Internet & Security Agency (KISA) and Personal Information Protection Commission (PIPC). The agencies will examine the cause and oversee consumer-protection measures, including full compensation if harm occurs. The number of people affected and the records involved have not been disclosed.

Bithumb is South Korea’s second-largest crypto exchange by trading volume.