Bithumb CEO vows broad compensation over 'ghost coin' incident

Bithumb CEO Lee Jae-won acknowledged weaknesses in the cryptocurrency exchange’s internal control system in connection with its unprecedented bitcoin misallocation incident, pledging Wednesday to provide comprehensive compensation to affected users. He said the country’s second-largest crypto exchange would determine the full scope of compensation based on complaints filed in the aftermath of the case, adding that losses stemming from panic-driven selloffs and forced liquidations would be eligible for relief. “We deeply regret our failure to promptly detect abnormal increases in account balances caused by the erroneous distribution,” Lee said during an appearance before the National Assembly. “Monitoring mechanisms, alert systems and other internal safeguards were insufficient to quickly identify and address the problem.” Regarding damage assessment, Lee said the exchange currently recognizes two primary categories for compensation — panic selling that occurred during the disposal of 1,788 bitcoins and some 30 cases of forced liquidation that followed. “We will expand the