Doohyun Hwang

More than $400 million flowed out of US spot Bitcoin exchange-traded funds (ETFs) in a single day. According to data from Trader T on the 12th (local time), the 12 US spot Bitcoin ETFs recorded total net outflows of $410.57 million on the day. BlackRock’s iShares Bitcoin Trust (IBIT) posted the largest net outflow, with $157.76 million withdrawn. Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) also saw $104.13 million in outflows. Grayscale’s Grayscale Bitcoin Trust (GBTC) recorded $59.12 million, while the lower-fee Bitcoin Mini Trust (BTC) posted $33.54 million in net outflows. All ETFs except WisdomTree (BTCW) experienced outflows. Meanwhile, Bitcoin is trading in the $66,400 range on Binance’s Tether (USDT) market, down 1% from the previous day.

Bitcoin (BTC) has recently plunged, triggering a wave of realized losses, but an analysis suggests on-chain data indicate the market has yet to reach a true bottom. On the 12th (local time), CryptoQuant, a crypto-asset (cryptocurrency) data analytics firm, said in its weekly report that “while Bitcoin remains in a bearish phase, it has not entered a full-fledged bottoming zone,” offering this assessment. According to the report, Bitcoin investors realized about $5.4 billion in daily losses in a single day on the 5th. That is the largest figure since March 2023 and exceeds levels seen during the FTX collapse. However, CryptoQuant said it is too early to view this as a bottom signal. That is because the monthly cumulative realized losses, converted not into dollar value but into the number of bitcoins (BTC), amounted to only about 300,000 BTC. This is still low compared with 1.1 million BTC recorded during the late-2022 bear market, suggesting leverage and overcrowded positioning in the market have not been fully flushed out. Key valuation indicators also have yet to reach historically low levels. Both the market value to realized value (MVRV) ratio and the net unrealized profit/loss (NUPL) metric have not moved into the extreme undervaluation zone typically observed near bottoms. The report noted that “about 55% of the total Bitcoin supply is still in profit,” adding that “at bottoms in past cycles, this ratio fell to around 45–50%.” It also said long-term holders’ selling behavior remains far from bottom-like. Long-term investors are currently selling around their average cost (0% return), whereas previous bear-market bottoms formed when long-term holders capitulated, offloading holdings while absorbing 30–40% losses. A “bull-bear market cycle indicator,” used to gauge the market cycle, also remains in the bearish stage. The market has not yet entered the extreme bearish zone where bottom formation began in the past. CryptoQuant said further price support testing may be needed. The report said “on-chain data show that the key support level—the realized price (about $55,000)—has not yet been tested,” adding that “Bitcoin is currently trading about 18% above the realized price.” It continued: “Looking at past cycles, after falling to 24–30% below the realized price, prices went through a 4–6 month bottoming process,” and projected that “a bottom is more likely to be formed through time and repeated corrections than through a single capitulation event.”

The US Federal Reserve (Fed) has proposed classifying virtual assets (cryptoassets) as a distinct asset class—separate from equities or foreign exchange—and applying derivatives margin regulations accordingly. The move is seen as aimed at managing risks in the highly volatile crypto market and creating a safer trading environment within the regulated financial system. On the 12th (local time), Fed researchers Anna Amirzhanova, David Lynch and Annie Zhang published a working paper outlining the proposal. The authors argued that the Standard Initial Margin Model (SIMM), currently used in derivatives markets, does not adequately capture the idiosyncratic risks of cryptoassets. Existing models estimate risk by grouping assets into categories such as interest rates, equities, FX and commodities. But because cryptoassets exhibit extreme price swings and are priced based on drivers different from those of traditional assets, the current classification framework could underestimate risk, the researchers said. This is particularly relevant for over-the-counter (OTC) derivatives that do not go through a central counterparty (CCP), where precise margin calculation is essential to mitigate counterparty risk. The researchers proposed assigning a separate risk weight to cryptoassets. Specifically, they recommended distinguishing between “floating” cryptoassets whose prices move freely—such as Bitcoin and Ethereum—and “pegged” cryptoassets (stablecoins) designed to maintain price stability. They also suggested developing a “benchmark cryptoasset index” that combines floating and pegged assets to measure volatility across the broader market. This, they said, would enable regulators and financial institutions to fine-tune margin requirements to reflect real market conditions and prepare for shocks stemming from sharp price moves. The proposal reflects a shift in the Fed’s stance toward integrating cryptoassets into the financial system rather than treating them solely as a regulatory target. In December, the Fed withdrew its 2023 guidance that had restricted banks’ crypto-related activities, lowering the bar for banks seeking to enter the crypto business. The Fed is also reportedly discussing the issuance of “skinny” master accounts that would grant crypto firms direct access to the central bank payment system while limiting their functionality.

Bithumb urged users to be vigilant against phishing messages impersonating compensation notices related to the earlier incident involving an erroneous payout of Random Box Bitcoin (BTC). First, the compensation notice message does not include a URL link. Therefore, any message displaying a URL should be regarded as smishing and treated with heightened caution. All compensation guidance is provided only through Bithumb Customer Service and will not be sent from any other numbers. Bithumb does not request personal information such as IDs, passwords, security passwords or ARS verification, and it does not send text messages or emails with attachments. It also never asks customers to transfer virtual assets under any circumstances. Bithumb further advised users to ▲refrain from clicking any URL links related to compensation ▲beware of messages containing keywords such as “compensation” or “damage check” ▲and, if smishing is suspected, verify through the “Protection Nara Service.” If damage occurs such as the installation of a malicious app or fund transfers, users should immediately report it to 112 and request a payment suspension through relevant agencies. A Bithumb official said, “As smishing attempts exploiting the incident have been identified, please never click URLs from unclear sources,” adding, “We will put user protection first and work closely with relevant agencies to prevent harm.”

Bitcoin fell overnight in tandem with weakness in tech stocks, sliding to around the $65,000 level. It has surrendered most of the gains it showed after recently reclaiming $70,000, reverting to near last week’s lows. According to Binance’s Tether (USDT) market on the 12th, Bitcoin is trading around $66,000, down about 2% from the previous day. Major altcoins such as Ethereum and Solana also tracked Bitcoin’s move and weakened in tandem. Analysts say the decline has moved in lockstep with softness in U.S. tech stocks—particularly the software sector. The tech-heavy Nasdaq fell 2% last Wednesday, while the iShares Expanded Tech-Software Sector ETF (IGV), which tracks software companies, plunged 3%. IGV has struggled this year, down 21% year to date. With advances in artificial intelligence (AI) dramatically improving coding capabilities, skepticism has grown over the lofty valuations of legacy software companies. Market experts are focusing on the strong correlation between crypto assets and software stocks. Jim Bianco, president of Bianco Research, said, “Software stocks are struggling again and have returned to last week’s panic low levels,” adding, “We shouldn’t forget that crypto assets are another form of software—‘programmable money.’ Fundamentally, the two asset classes are moving in the same direction.”

The Decibel Foundation, incubated by Aptos Labs, will introduce its protocol-native stablecoin, “USDCBL,” ahead of the launch of its decentralized derivatives exchange mainnet later this month. On the 11th (local time), the Decibel Foundation said via its official X account that it will issue USDCBL, a U.S. dollar-pegged token, through the “Bridge” platform—acquired by fintech firm Stripe late last year. Users will deposit existing USDC and convert it into USDCBL to use as collateral for on-chain perpetual futures trading. The move is a strategy to avoid reliance on external stablecoin issuers and internalize within the protocol the economic benefits from reserve management. The foundation said USDCBL’s reserves will consist of cash and short-term U.S. Treasuries, and it plans to reinvest the resulting interest income into protocol development and ecosystem expansion. This, it said, could reduce dependence on trading fees or incentive programs. The foundation emphasized, “This is not simply launching yet another stablecoin, but building the exchange’s core infrastructure.” Decibel is a decentralized derivatives exchange built on the Aptos network and has adopted a fully on-chain model using a single cross-margin account. According to the foundation, more than 650,000 unique accounts participated during the testnet period in December, and daily transaction volume surpassed 1 million.

Toss, which has set up a dedicated blockchain organization, has been confirmed to be sounding out the market with a view to acquiring an overseas virtual-asset (cryptocurrency) exchange. In particular, it has been found to be maintaining contacts with a range of overseas platforms with an institutional trading model in mind. According to multiple industry sources on the 12th, Toss is reviewing whether to pursue an acquisition or strategic investment while engaging with a number of overseas virtual-asset exchanges, centered on its US subsidiary, “Toss Securities America.” It was also reported to have recently held a meeting with EDX Markets, a US institutional-only digital-asset trading platform. A source familiar with internal discussions at Toss said, “It’s not at the stage of deciding whether to proceed with an acquisition, but I understand they are keeping the possibility of acquiring an overseas exchange open and continuing talks with multiple platforms.” In the case of EDX Markets, however, some analysts say the contact was more likely aimed at benchmarking its institutional trading structure and regulation-friendly operating model, rather than evaluating it as an acquisition target, given that it is an institutional-only platform backed by major Wall Street financial firms including Fidelity. Toss’s move to consider acquiring an exchange also dovetails with the company’s establishment of a dedicated blockchain organization, previously reported exclusively by Bloomingbit. Toss recently set up a new blockchain unit and has begun hiring related developers. The job postings include advanced technical requirements—such as node operation, cryptography-based signing systems (HSM), and large-scale traffic handling—prompting interpretations that the company is effectively preparing with “exchange-grade infrastructure” in mind. An industry official said, “Designing wallet and transaction infrastructure in-house is highly likely to be foundational work for expanding trading functions or custody down the road,” adding, “It could be a preliminary step toward acquiring an overseas exchange.” The person also analyzed that, “Given the emphasis on financial-grade stability and compliance readiness, they appear to be factoring in requirements such as the Information Security Management System (ISMS) and virtual-asset service provider (VASP) standards.” Past experience also appears to be a factor behind Toss’s review of an overseas exchange acquisition. Toss previously sought to acquire domestic crypto exchange ProBit in 2022, but the deal fell through amid concerns from the Financial Services Commission over anti-money laundering (AML) capabilities. As a comprehensive financial platform that already owns an internet-only bank and a securities firm, Toss would face complex regulatory burdens if it were to directly acquire a domestic exchange—ranging from conflicts of interest to consumer protection, anti-money laundering, and strengthened internal controls. As a result, the industry is increasingly leaning toward the view that Toss may opt for an indirect approach using overseas entities rather than a direct domestic entry. Experts said, “If Toss moves ahead with an exchange acquisition, it is more likely to choose a regulation-friendly exchange with a high institutional share rather than a high-leverage derivatives-focused platform,” adding, “It will pursue an indirect strategy centered on custody, wallets, and settlement infrastructure rather than direct domestic operations.” If Toss were to secure an exchange, it is expected to be able to build an integrated digital-asset financial infrastructure that spans stablecoin distribution and settlement infrastructure as well as asset custody, trade execution, and liquidity management. In response, Toss said, “We cannot confirm the related details.” Hwang Doo-hyun, Bloomingbit reporter cow5361@bloomingbit.io

Signs strategic partnership with Arbitrum Introduces stablecoin payments at 2,000 stores Also pushes membership tokenization and DeFi integration Korean mid-sized fashion retailer Fashion Group Hyungji (Hyungji) is moving to fully introduce a virtual-asset (cryptocurrency) payment system by partnering with global blockchain project Arbitrum. On the 12th, Hyungji signed a strategic partnership with Offchain Labs, the blockchain infrastructure company that developed Arbitrum. Under the deal, Hyungji will build an integrated stablecoin payment infrastructure spanning roughly 2,000 offline stores in South Korea and Singapore as well as its online channels. Choi Joon-ho, vice chairman of Hyungji, told Bloomingbit, “Arbitrum has the technological maturity to handle thousands of stores and millions of customers,” adding, “By adopting stablecoin payments, we will cut the burden of legacy payment fees and stand at the forefront of retail innovation.” Hyungji is a fashion company that owns major brands such as Crocodile Lady and Chatelaine. It also operates a nationwide distribution network through its role as supplier of replica uniforms for the Korea’s largest school-uniform manufacturer Hyungji Elite and the professional baseball club Hanwha Eagles. Through the agreement, Hyungji expects to lower transaction fees and shorten settlement times by integrating a blockchain-based payment network into its existing card-centric payment structure. As a payment method, industry sources are floating the possibility of “Hyungji Pay,” which Hyungji is developing in-house. The company is known to have been focusing on building an integrated payments platform since last year, hiring a large number of IT specialists. The industry believes Hyungji is reviewing ways to link stablecoins on top of Hyungji Pay to expand online-to-offline payment services. The partners are also pursuing customer-experience innovation using blockchain technology. The two sides agreed to explore tokenizing the membership rewards program and linking it to decentralized finance (DeFi) protocols. The strategy is to go beyond payments and convert rewards and points into blockchain-based assets to create new financial value. However, the specific stablecoins to be supported have not yet been finalized. Hyungji and Offchain Labs are said to view it as appropriate to make a final decision after South Korea’s stablecoin legislation and regulatory direction are clarified. AJ Warner, chief strategy officer (CSO) at Offchain Labs, said, “Hyungji is a company that recognized the practical benefits of blockchain faster than anyone,” adding, “This partnership is an example showing that Web3 technology is becoming essential infrastructure for everyday commerce.”

Web3 infrastructure company KGeN said on the 11th that it has launched 'KStore,' a marketplace that allows users to purchase goods directly with virtual assets (cryptocurrencies). KStore is a platform designed to enable purchases from some 400 global brands across a wide range of categories—including travel, entertainment, fashion and retail—without converting crypto into fiat currency. Through the service, KGeN aims to address a key hurdle to broader Web3 adoption: using digital assets in the real economy. KStore offers major global gift cards, including those for digital service brands such as NordVPN, Roblox and Microsoft. Users can instantly purchase and use gift cards with the crypto they hold. It also integrates directly with the KGeN Wallet and supports streamlined payments. KGeN said, “KStore’s goal is to make crypto a practical means of payment,” adding, “If assets are in a wallet, users should be able to purchase subscriptions, clothing and travel vouchers immediately without going through traditional financial institutions.” It added, “As the Web3 industry matures, the brands that endure will be those that deliver tangible, everyday value,” and said it aims to establish KStore as commerce infrastructure for the decentralized era.

LayerZero launches 'Zero' mainnet Zero-knowledge proofs adopted...costs cut to one-fiftieth Wall Street heavyweights join, including Citadel and ARK Invest "Even Tether sees profit growth"…courting Korea’s financial sector Cross-chain interoperability protocol 'LayerZero (ZRO),' which has connected more than 150 blockchains worldwide, has unveiled its own mainnet, 'Zero.' The company says it aims to build financial-industry-grade infrastructure that overcomes legacy blockchains’ speed and cost constraints and to emerge as a blockchain spanning global financial markets. It also plans to accelerate its push into Korea’s won-denominated stablecoin and real-world asset (RWA) markets on the back of the new network. LayerZero held a press briefing on the 11th at the Glad Hotel in Yeouido, Seoul, where it presented the technical features of its next-generation blockchain architecture 'Zero,' its global expansion strategy, and plans for entering the Korean market. "NYSE-level volume can be put on-chain…at one-fiftieth the cost" In a keynote address, Lim Jong-gyu, LayerZero’s Asia-Pacific (APAC) head, introduced the 'Zero' mainnet, saying, "We’re holding a separate briefing in Seoul after New York because we view the Korean market as strategically important." Lim underscored the need for 'Zero' by pointing to the technical limits of existing blockchains. "The New York Stock Exchange (NYSE) processes as many as 2 million trades per second, but even high-performance chains such as Solana only handle about 4,000 per second," he said, adding, "Simple optimization can’t meet the performance standards the financial industry demands." To address this, LayerZero adopted zero-knowledge proof (ZK) technology. By enabling verification of information without disclosing all payment details, the company says it dramatically reduced network load. It also applied an architecture that distributes processing depending on transaction characteristics, improving consistency and stability. According to the company, Zero was designed to target more than a 100-fold performance improvement over existing blockchains through innovations across compute, storage, networking, and ZK. It said it has built a compute scheduling technology (FAFO) that supports 1 million transactions per second and a high-speed, verifiable database (QMDB) that processes 3 million state updates per second. It also stressed that operating costs can be sharply reduced. Lim said, "With current technology, putting all NYSE trades on-chain would cost more than ₩5 trillion a year, but using Zero would make it possible to operate for under ₩100 billion," adding, "Our goal is to implement, in a blockchain environment, the transaction-processing capacity global financial markets require." He continued, "LayerZero aims to become the plumbing of the crypto-asset market," and added, "We will create an environment where any application or blockchain can be onboarded." Wall Street 'big money' joins, including ARK Invest and Citadel…tie-up with Nexon too LayerZero also unveiled a roster of global partners participating in the Zero ecosystem. Intercontinental Exchange (ICE), the NYSE’s parent company, the Depository Trust & Clearing Corporation (DTCC), hedge-fund market maker Citadel, Google Cloud, and ARK Invest were named as launch partners and investors. Cathie Wood, chief executive officer (CEO) of ARK Invest, and Michael Blaugrund, vice president of strategy initiatives at ICE, among others, have joined LayerZero’s advisory board to support the expansion of the Zero ecosystem. Cooperation with Korean companies was also specified. LayerZero said it signed a memorandum of understanding (MOU) for a partnership with Nexpace, Nexon’s blockchain subsidiary. It plans to connect Nexpace’s gaming ecosystem to Zero to explore new business models. A LayerZero official said, "We are in talks with Nexpace on multiple fronts. Details of a more concrete partnership will be announced soon." "Tether profit up ₩600 billion in nine months"…courting Korea’s financial sector Brian Pellegrino, a LayerZero co-founder, delivered a message to Korea’s financial sector via video link. He said, "After adopting LayerZero’s solution, Tether expanded its issuance chains from just three—Ethereum, Tron and Ton—to 16 in nine months," adding, "As a result, an additional $11 billion (about ₩16 trillion) in assets flowed in, translating into a direct profit increase of about ₩600 billion a year." He emphasized that expanding technical infrastructure directly translated into revenue growth. LayerZero’s strategy is to apply this success story to the Korean market. Pellegrino said, "Korea has strong fintech capabilities and a fast pace of crypto-asset adoption, to the point it’s called Asia’s financial hub," adding, "We can solve the liquidity expansion and cost-efficiency challenges faced by won stablecoin issuers." He added, "As we did in working with Tether, we want to continue in-depth discussions with Korean financial institutions that are considering strategic partnerships beyond a simple technology rollout," making clear the company’s intent to step up its push into Korea.

"Tether, the world’s largest stablecoin issuer, increased assets under management (AUM) by $11 billion (about ₩16 trillion) just nine months after adopting LayerZero’s solution. On an annualized basis, that translates to roughly ₩600 billion in revenue." Brian Pellegrino, co-founder of LayerZero, sent a 'love call' to South Korea’s financial sector. Based on the successful collaboration case with Tether, the company is considering entering the won-denominated stablecoin and real-world asset (RWA) markets. On the 11th, Pellegrino joined the LayerZero press conference held at the Glad Hotel in Yeouido, Seoul, via video, saying, "South Korea has such a high level of fintech that it is called 'Asia’s financial hub,' and the pace of crypto adoption is very fast," adding, "Beyond short-term partnerships, we want to work with Korean companies that aim to create meaningful change through blockchain." Pellegrino explained, "Most issuers want to stay only on major chains with deep liquidity. Tether, too, previously issued stablecoins mainly on three chains—Ethereum, Tron and Ton. But through its collaboration with LayerZero, it expanded the number of stablecoin issuance chains to 16 in just nine months." According to LayerZero, the additional assets that flowed into the Tether ecosystem through this amounted to $11 billion. Pellegrino said, "This led directly to an increase in the issuer’s revenue (an annual $400 million to $450 million)," adding, "It proved that expanding technical infrastructure translates straight into top-line growth." LayerZero plans to apply this same success formula to the Korean market as well. In particular, it cited won-based stablecoins and RWA areas such as tokenized securities as key targets. Pellegrino said, "A core challenge for won stablecoin issuers is also 'how to expand liquidity as quickly and safely as possible,'" adding, "Based on LayerZero’s technical strengths—cost efficiency and transfer speed—we are confident we can solve this difficult problem." He added, "Just as Tether thought deeply about the reasons for and effects of adopting the technology, we are having discussions of the same depth with Korean financial institutions," emphasizing, "We are open to collaboration with any company that wants to lead the market."

Unveils proprietary mainnet 'Zero' “Processes 2 million transactions per second… pushing past blockchain limits” Participants include ICE, Citadel and Google Cloud Partners domestically with a Nexon subsidiary LayerZero, a cross-chain interoperability protocol, has officially launched its proprietary mainnet, 'Zero', and is moving to target the blockchain infrastructure market. The company aims to provide financial-industry-grade infrastructure by using zero-knowledge proof (ZK) technology to address entrenched limitations of existing blockchains—namely speed and cost. On the 11th, LayerZero disclosed the plan at a press briefing held at the Glad Hotel in Yeouido, Seoul. Lim Jong-gyu, head of LayerZero APAC (Asia-Pacific), who delivered the keynote, said, “After New York, Seoul is the only place in the world where we are holding a separate briefing, which reflects how important we consider the Korean market,” adding, “Zero is infrastructure developed to accelerate the tokenization of all assets.” Lim underscored the need for Zero by pointing to the technical constraints of existing blockchains. “The New York Stock Exchange (NYSE) processes as many as 2 million trades per second, but even high-performance chains such as Solana remain at around 4,000 transactions per second,” he said. “Simple optimization cannot meet the performance required by the financial industry.” To address this, LayerZero introduced zero-knowledge proofs, which prove only the truth or falsity of information without revealing payment details. Lim explained, “If all NYSE trades were put on-chain with current technology, network costs would exceed 5 trillion won per year, making it physically impossible,” adding, “By contrast, using Zero with zero-knowledge proofs makes it possible to operate at an annual cost of 100 billion won or less, and communication costs are expected to fall to one-tenth of current levels within five years.” He added, “Zero adopts a heterogeneous architecture capable of processing about 10GB of data per second. It supports roughly 2 million transactions per second. A lineup of global partners participating in the 'Zero' ecosystem was also disclosed. Launch partners and investors include Intercontinental Exchange (ICE), the parent of the NYSE, and the Depository Trust & Clearing Corporation (DTCC), as well as hedge-fund market maker Citadel, stablecoin issuer Tether, Google Cloud and ARK Invest. Lim said, “Traditional finance heavyweights such as Citadel and ICE are participating as strategic investors and will work with us to build next-generation financial infrastructure.” Collaboration with domestic companies was also specified. LayerZero signed a memorandum of understanding (MOU) for a partnership with Nexpace, Nexon’s blockchain subsidiary. The plan is to connect Nexpace’s gaming ecosystem to Zero to explore new business opportunities. Lim emphasized, “Our mission is to become the plumbing for crypto and stablecoins,” adding, “Through Zero, we will create an environment where any application or blockchain can be onboarded.”

Robert Kiyosaki, best-selling author of Rich Dad Poor Dad, pushed back against controversy over when he bought Bitcoin, saying “what matters is not the date, but the price and value.” In a post on X on the 7th (local time), Kiyosaki said, “Some people claim it’s a lie that I bought Bitcoin at $6,000,” adding, “I know the price, not the purchase date.” Previously, some online users raised doubts about his investment track record, arguing that the date implied by his stated purchase price did not match Bitcoin’s market price at the time. On this, he said, “I don’t know why anyone is obsessed with when I bought Bitcoin,” and pointed out, “Isn’t there a personal agenda?” He continued, “If Bitcoin falls back to $6,000, I’ll buy more,” adding, “Even then, I won’t care about the date.” Kiyosaki also said he is preparing to buy more gold. “I don’t remember exactly when I bought assets, but I’m glad I bought them,” he said, stressing that “what matters is whether you hold them and their long-term value.” He advised investors to “keep your distance from people who are more fixated on the purchase date than on an asset’s value,” and urged them to “focus on the fundamentals of real and alternative assets such as Bitcoin, gold, silver, and Ethereum.”

Jim Cramer, a former fund manager and popular CNBC host, has drawn attention in the crypto market after saying he "heard that President Donald Trump is buying Bitcoin as a U.S. strategic reserve asset." Cramer said on CNBC on the 7th (local time), "I heard at $60k he's gonna fill the Bitcoin Reserve," adding, "If true, it could carry major implications for the market." In fact, Bitcoin rebounded immediately after briefly touching the $60,000 level intraday on the 5th, surging about 15% and topping $70,000. However, Cramer’s remarks amount to market chatter he said he heard, and there has been no official confirmation from the White House, the U.S. Treasury Department, or other government agencies. President Trump has also not made any public comments recently regarding Bitcoin or crypto assets.

Bithumb said on the 8th that it has completed reconciliation of customer assets as of 10:45 p.m. on the 7th in connection with a recent erroneous payout of Bitcoin (BTC), and will begin rolling out compensation payments in phases. Immediately after the incident, Bithumb moved to promptly recover the mistakenly distributed assets. It prioritized fully matching consistency between customer deposits and the exchange’s holdings, including even minor discrepancies that could arise during the recovery process. As a result, it recovered 99.7% of the erroneously paid Bitcoin on the day of the incident, and fully made whole the remaining 0.3%—1,788 BTC that had already been sold—by deploying company-held assets. Bithumb said all of its virtual asset holdings, including Bitcoin held in custody, are being managed at levels that match or exceed user deposits. It added that customer assets remain safely stored as before. In responding to the incident, Bithumb activated a company-wide crisis management system led by top management, with all business divisions participating. It has been transparently sharing key measures and progress through notices, and immediately after the erroneous event reward payout occurred, it blocked trading and withdrawals on the relevant accounts and proceeded with recovery efforts. It said it is also providing sequential updates on the cause of the incident, recovery status, measures to prevent recurrence, and the compensation plan, and is cooperating faithfully with authorities’ investigation. Compensation will also be provided in stages. Customers who were logged into the Bithumb app or website at the time of the incident will receive 20,000 won. Customers who sold at low prices during the incident window—from 7:30 p.m. to 7:45 p.m. on Feb. 6—will receive the full difference in sale proceeds plus an additional 10% compensation. In addition, a 0% trading fee policy for all listed coins will be implemented for seven days starting at 0:00 on Feb. 9. Bithumb also plans to operate a dedicated investor relief team within its customer service center to provide affected customers with detailed guidance on compensation. Bithumb said, “We sincerely apologize for the inconvenience and concern this incident has caused our customers,” adding, “We will continue to place the highest priority on protecting customer assets and provide a safer trading environment by preventing recurrence and strengthening internal control systems.”