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South Korean Lawmakers Question Bithumb CEO Over Bitcoin Transfer Error; FSS Opens Probe

South Korean lawmakers questioned Bithumb CEO Lee Jaewon on Wednesday over a Bitcoin transfer error during a promotional event last week, Bloomberg reports. An employee processed customer payments in Bitcoin instead of Korean won, creating the appearance of fake Bitcoin in the market. Democratic Party lawmaker Min Byeongdeok said Bithumb gave away Bitcoin it did not own and called the act naked short selling. The Financial Supervisory Service has opened an investigation into Bithumb's compliance and risk management, and Financial Commission Vice Chairman Kwon Daeyoung said the government will seek institutional reforms via an emergency response team, including inspections of all exchanges.
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