Bithumb fined $136,000: South Korean regulator uncovers massive violations in user data transfer
South Korea's Personal Information Protection Commission (PIPC) has ruled to impose a fine of 210 million won (approximately $136,000) on the cryptocurrency exchange Bithumb. The reason is the illegal transfer of users' personal data to foreign companies without obtaining proper consent.
Systematic Violations in Data Handling
According to the investigation results, the violations occurred between September and November 2025. Bithumb transferred information from the order book for trading pairs involving USDT. Key point: the exchange obtained client permission to transfer data to only one platform — Stellar, but actually sent it to a platform operated by BingX. This is a direct violation of the Personal Information Protection Act.
Scale of the Leak: 13 Foreign Exchanges
The regulator also identified violations in data transfers to 13 other foreign cryptocurrency exchanges. During these operations, Bithumb transmitted user names, dates of birth, and wallet addresses. Full and informed consent from clients for such actions was not obtained. The PIPC emphasized that the cross-border transfer of personal information requires strict compliance with legislation and protection of data subjects' rights.
New Rules for Blockchain Companies
Simultaneously, the PIPC issued special guidance for blockchain companies. The document takes into account a key feature of the technology: transparency and the impossibility of deleting records. The regulator recommended not to include on-chain data that allows personal identification — such as names or social security numbers. This is an important step toward harmonizing traditional privacy norms with decentralized architecture.
It is worth recalling that this is not the first high-profile case in South Korea recently. Earlier, on June 11, the PIPC imposed a record fine of 624.6 billion won on the tech giant Coupang following a massive data leak. The regulator is clearly increasing pressure on digital companies, and Bithumb is just another target in this campaign.
Expert opinion: This case is a warning signal for the entire crypto industry. Bithumb, one of the oldest players in the market, made gross errors in data management. The fine of $136,000 is an insignificant amount for such an exchange, but reputational losses and tighter regulation could prove far more painful. Investors should be more attentive to the rights they grant platforms during registration.