Bithumb targets 2028 IPO after overhauling controls following February crediting error
In brief
- Bithumb targets 2027 preliminary listing review, 2028 IPO completion
- Exchange reorganized structure, spinning off Bithumb Asset to reduce conflicts of interest
- February error credited 620,000 BTC instead of cash; recovered 99.7% but 1,788 BTC sold
Listing roadmap and structural overhaul
Bithumb said Monday it plans to apply for a preliminary listing review in 2027 and complete an initial public offering in 2028. The exchange has already begun restructuring to meet listing requirements. Bithumb has reorganized its business structure, including spinning off Bithumb Asset, to clarify responsibilities and reduce potential conflicts of interest.
The company's preparations will include upgrading internal controls and shifting from domestic accounting standards to K-IFRS (Korean International Financial Reporting Standards). Bithumb said the timetable could change depending on market conditions and the review schedules of relevant authorities.
The February crediting error that triggered reforms
The IPO push follows a significant operational failure in February. In a February promotional error, Bithumb mistakenly credited customer accounts with balances totaling 620,000 Bitcoin instead of distributing 620,000 Korean won in cash rewards. The scope of the error — roughly 39 billion dollars at the time — exposed critical gaps in the exchange's verification processes.
Bithumb recovered 99.7% of the erroneous credits, though customers sold about 1,788 BTC before accounts were frozen. At a parliamentary hearing in February, CEO Lee Jae-won acknowledged the failure. "The exchange's process for checking the planned distribution against its actual holdings had failed and that the promotional amount had not been earmarked in a separate account."
Broader consolidation in South Korea's exchange sector
Bithumb's listing plans come amid significant consolidation in South Korea's crypto trading landscape. The exchange is one of five South Korean platforms that support fiat currency trading through real-name bank accounts, operating via partnership with KB Kookmin Bank. Rivals have moved quickly to consolidate. Mirae Asset Consulting took control of rival exchange Korbit on July 23, while Upbit operator Dunamu is pursuing a share-swap deal that would make it a wholly owned subsidiary of Naver Financial, subject to regulatory and shareholder approval.
