South Korea Court Pauses Bithumb’s Six-Month Crypto Ban Order

TLDR

• A Seoul court paused Bithumb’s six-month suspension while it reviews the legal challenge.
• The ruling allows Bithumb to continue operations without restrictions during the case
• Regulators accused Bithumb of about 6.65 million compliance violations.
• Authorities imposed a fine of $24.6 million along with the suspension order.
• The suspension would have blocked new users from deposits and withdrawals.

A Seoul court has paused a regulatory suspension against Bithumb while legal proceedings continue. The decision grants the crypto exchange temporary relief from a six-month operational restriction. Authorities had imposed the sanction over alleged compliance failures, and the court will now review the case.

Bithumb Secures Court Relief from Suspension Order

The Seoul Administrative Court approved Bithumb’s stay request on the same day it was filed. Judge Gong Hyeon-jin led the Second Administrative Division that issued the decision.

The ruling halts enforcement of the suspension until the court reaches a final judgment. As a result, Bithumb can continue operations without the planned restrictions for now.

Regulators had ordered the suspension in March through the Financial Intelligence Unit. They also imposed a fine of $24.6 million, equal to 36.8 billion won.

However, authorities have not clarified whether the fine falls under the suspension order. Bithumb continues to challenge both the sanction and related enforcement measures in court.

Officials accused the exchange of about 6.65 million regulatory violations. These included failures in customer identity checks and weak controls on restricted transactions.

The alleged breaches relate to South Korea’s financial reporting law. Regulators said Bithumb did not meet compliance requirements during inspections conducted between 2024 and 2025.

Authorities also issued warnings to Bithumb’s chief executive over the violations. They imposed a separate six-month suspension on the company’s reporting officer.

The enforcement would have blocked new users from depositing or withdrawing digital assets. Bithumb filed its lawsuit shortly before the penalty was due to take effect.

Legal Disputes Continue Over Compliance and Payout Error

Bithumb faces another legal issue linked to a payout mistake earlier this year. The exchange requested a court order to freeze 7 BTC that users have not returned.

The error occurred during a February promotional event involving payments to 249 users. Bithumb intended to distribute 620,000 won in total to participants.

Instead, the system mistakenly processed the payouts in Bitcoin due to an input error. The incorrect transfer briefly created unusually large payments before reversal within minutes.

Bithumb later contacted recipients to recover the funds from the error. Most users returned the assets, yet a small group refused to comply.

As a result, the exchange pursued a provisional seizure to secure the remaining Bitcoin. This legal step allows temporary asset freezing before a formal lawsuit proceeds.

Some users argue they have no obligation to return the funds. They claim the mistake originated from the exchange’s internal systems.

Legal experts cited in local reports disagree with that position. They state the situation qualifies as unjust enrichment under applicable law.

Experts said recipients must return assets received by mistake under such legal standards. The court has yet to issue a final decision on this matter.

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