Bithumb targets 2028 IPO after 620,000 BTC crediting blunder

Bithumb formalized a three-phase plan to list on a domestic exchange by 2028, pairing its IPO push with a governance overhaul that follows a February error that briefly credited customers with 620,000 bitcoin.

South Korean exchange Bithumb set a 2028 target for its initial public offering, outlining a three-phase roadmap that pairs the listing with an overhaul of internal controls, financial reporting and corporate structure.

"Bithumb's IPO is not simply making the company bigger," the exchange said in a customer notice posted Monday. "It is a process of building solid trust so that customers can feel reassured and make trades."

The roadmap calls for completing internal-control upgrades and converting accounting from Korean GAAP to Korean International Financial Reporting Standards in 2026, filing for a preliminary listing review with the Korea Exchange in 2027, and finishing the IPO in 2028. Samjong KPMG is advising under a contract running through 2027, and the exchange said it is working with domestic and international securities firms, law firms and accounting firms on valuation, legal due diligence and the listing review. The schedule remains subject to market conditions and regulatory timelines, Bithumb said.

The listing push comes as Bithumb works through a 36.8 billion won ($24.6 million) anti-money-laundering penalty and a 620,000 bitcoin crediting error, while a new 20 percent cap on major shareholders of crypto exchanges forces Bithumb Holdings, which controls about 73 percent of the exchange, to seek outside investors.

The 620,000 BTC error that reshaped the governance story

In February, a system error during a promotional campaign credited hundreds of customers with 620,000 bitcoin, worth roughly $43 billion at the time, instead of 620,000 won in cash rewards. Bitcoin's price on Bithumb's own won-denominated market briefly fell about 17 percent before deposits and withdrawals were frozen. The exchange has recovered 99.7 percent of the erroneous bitcoin, though customers sold about 1,788 BTC before accounts were frozen, with roughly 125 BTC still unresolved.

South Korea's Financial Intelligence Unit fined Bithumb 36.8 billion won and ordered a six-month partial business suspension, which a Seoul court has since paused pending appeal. In a separate case, the Personal Information Protection Commission imposed a 210 million won, or about $136,000, fine in June after finding the exchange violated rules governing overseas transfers of personal information during order-book sharing with BingX infrastructure.

A cap table in flux as rivals court traditional finance

The 20 percent ownership cap, introduced in March, is reshaping Bithumb's ownership. Local media reported that Kiwoom Securities is negotiating to acquire a stake through a planned purchase of newly issued shares, though final terms had not been agreed. Bithumb has also spun off its non-exchange businesses into a separate entity, Bithumb Asset, to clarify responsibilities and reduce potential conflicts of interest.

Rival exchanges are pursuing similar paths. Mirae Asset Consulting took control of 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. Hana Bank has disclosed plans to acquire a stake in Dunamu, and three Samsung affiliates reportedly plan to invest. OKX Ventures has invested in Coinone, and Binance completed its acquisition of Gopax after years of regulatory delays.

Bithumb has leaned on international expansion in the meantime, signing a deal in March to help build a licensed exchange in Vietnam with SSI Digital. Lawmakers are also considering the Digital Asset Basic Act, which would establish a comprehensive legal framework for cryptocurrencies and set the ownership cap at 20 percent, with up to 34 percent permitted under conditions still under review.

This article is for informational purposes only and does not constitute investment advice.