Bithumb Faces 13-Hour Altcoin Withdrawal Delay
Users suffered major inconvenience after altcoin withdrawals at virtual asset exchange Bithumb were delayed for more than 13 hours, and financial authorities said they plan to verify the details of the incident.According to industry sources on Aug. 12, a user who requested an altcoin withdrawal from
A user experienced a significant delay of more than 13 hours in processing an altcoin withdrawal on the virtual asset exchange Bithumb. The transaction was finally completed around 12:25 a.m. on August 12, following an initial four-hour processing period. The user reached out to Bithumb's customer service, who informed them that the delay was due to insufficient balances in the exchange's accounts and that additional funds needed to be secured.
As a result, the user had to wait an additional nine hours before the withdrawal was finally processed. The user also mentioned that the price gap with other exchanges narrowed during this time, preventing them from taking advantage of potential trading opportunities.
Bithumb refuted claims of insufficient balances, stating that its virtual asset balance was sufficient. The company explained that it stores a significant portion of virtual assets in a "cold wallet" disconnected from the internet for security purposes, but a temporary surge in withdrawal requests exceeded the amount in its connected "hot wallet."
A Bithumb official clarified that delays in withdrawals were due to the transfer of assets from cold wallets to hot wallets, a procedure aimed at ensuring the safe custody of assets. In response to the confusion caused by the phrase "insufficient balances," Bithumb plans to revise its customer guidance.
The industry is closely monitoring this incident, as similar delays have occurred in the past during the listing of specific altcoins on Bithumb, which led to surges in withdrawal demands. The Financial Supervisory Service (FSS) is also monitoring the situation, acknowledging that asset transfers from cold wallets to hot wallets can take time. The FSS official stated that the agency would investigate the specific circumstances of this case.
This delay in processing withdrawals could potentially impact Bithumb's planned initial public offering (IPO) scheduled for 2028. The exchange is working on overhauling its internal control system and governance structure to meet the requirements for a successful listing. Analysts emphasize that addressing concerns over customer asset management and system stability, crucial factors for a virtual asset exchange, is essential to avoid negative assessments during the future listing review process.
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