Bithumb's erroneous bitcoin transfers prompted Financial Supervisory Service Governor Lee Chan-jin to describe the case as a "disaster" on Feb. 9 and call for a large-scale sector-wide review of so-called "book transactions" where virtual assets are traded without being actually held, newspim reports. Speaking at the FSS headquarters in Seoul during a briefing on the 2026 main business plan, Lee said on-site inspections had begun after the incident report and that a full investigation would follow if legal violations are suspected, adding that once the proposed Digital Asset Basic Act is passed, sanctions could extend to licensing measures that may threaten virtual asset exchange operations. Lee stressed the core problem is Bithumb executing trades in "virtual" coins it did not own and noted other exchanges are also being reviewed, as this undermines trust in virtual asset trading platforms. Data cited show Bithumb as of last September held only 175 BTC for itself and 42,619 BTC on behalf of customers, totaling 42,794 BTC, while the erroneous transfers reached about 620,000 BTC, more than 14 times that balance and implying roughly 580,000 "ghost" bitcoins were issued through an internal ledger-based book trading structure that itself is legal but, in this case, lacked safeguards against paying out non-existent assets.

South Korea's Financial Supervisory Service said customers who sold tokens from Bithumb's accidental distribution of over $40 billion in Bitcoin on Feb. 9 are legally obliged to return the assets, Reuters reports. The FSS chief said the crypto sector has structural vulnerabilities and urgently needs stronger oversight. The watchdog added it would take a cautious stance on "ghost tokens" and Bitcoin spot ETF launches, and plans to expand its remit through a second phase of the Digital Asset Basic Act.

Rosen Law Firm opened a probe on Feb. 9 into potential securities claims for BAL investors over allegedly misleading business information, BlockBeats reports. The investigation follows a Nov. 3 attack reported by Bloomberg, with PeckShield and Cyvers estimating losses near $128 million. The firm is preparing a class action.

The Federal Deposit Insurance Corporation agreed to pay Coinbase $188,440 in legal expenses and overhaul its Freedom of Information Act policy following a court ruling that found the agency violated federal disclosure rules, BlockBeats reports. Under the February 9 settlement, the FDIC will release previously withheld crypto-related "pause letters," add training guidance instructing staff to interpret FOIA requests broadly, and stop applying blanket confidentiality to all bank supervisory documents under FOIA Exemption 8.

The Commodity Futures Trading Commission authorized national trust banks to issue USD-pegged tokens under the GENIUS Act framework on Feb. 8, Cointelegraph reports. The decision expands stablecoin issuance rules for national trust banks.

The White House will hold its second staff-level crypto meeting next Tuesday, centering on stablecoin yield payments and including senior policy representatives from major U.S. banks for the first time, crypto journalist Eleanor Terrett reported on Feb. 8. Bank of America, JPMorgan and Wells Fargo have received invitations, with PNC Bank, Citibank and U.S. Bank also possibly attending alongside industry groups including the Bank Policy Institute, American Bankers Association and Independent Community Bankers of America, people familiar with the matter said. Banks are seeking limits on stablecoin interest offerings by crypto firms, arguing high-yield crypto accounts could divert deposits, constrain lending capacity and create financial instability, while crypto companies counter this stance protects banks' regulatory advantages and suppresses competition. Treasury Secretary Scott Bessent on Thursday expressed support for smaller banks and said authorities will work to ensure stablecoin yield payments do not trigger deposit volatility, with committee executive director Patrick Witt urging stakeholders to reach an agreement by month-end.

US Treasury Secretary Janet Yellen said on Feb. 4 that neither the Treasury Department nor the Financial Stability Oversight Council has authority to bail out Bitcoin or require banks to purchase it as reserves, BlockBeats reports. Yellen stressed that US taxpayer funds will not be invested in crypto assets. She added that Bitcoin currently held by the US government comes from law enforcement seizures and is separate from funds managed on behalf of taxpayers.