Seoul court stays Bithumb’s six-month suspension

A Seoul administrative court granted a stay on a six-month suspension that the Financial Intelligence Unit had imposed on crypto exchange Bithumb, pausing enforcement while judges review the company’s administrative challenge. The court’s 2nd Administrative Division, led by Judge Gong Hyeon-jin, approved the request on Thursday.

The FIU, the anti-money laundering unit under the Financial Services Commission, issued the suspension in March and had set it to begin on March 27. The regulator said Bithumb failed to meet AML obligations, including verification lapses in about 6.65 million cases, and imposed a 36.8 billion won fine in addition to the suspension. Bithumb filed an administrative lawsuit and requested a stay of execution on March 23.

The fine remains unpaid more than four weeks after the deadline even though the FIU offered a 20% early-payment discount. The regulator has also indicated possible disciplinary action against Bithumb’s CEO, Lee Jae-won.

Bithumb warned that enforcing the suspension would limit new user growth and hurt its business operations. The FIU said the suspension would have only limited impact on the company’s revenue. With the court’s stay, the exchange can accept external cryptocurrency deposits and withdrawals from new customers and continue normal services until the court issues a final ruling.

In a brief statement, Bithumb wrote, ‘We plan to faithfully present our position throughout the remaining legal proceedings.' Company officials have indicated they will contest the fine in court.

Regulatory pressure has affected the exchange’s plans and controls. Bithumb pushed a proposed initial public offering to 2028, citing regulatory conditions and internal matters. Earlier this year an internal promotion erroneously displayed a theoretical distribution of 620,000 BTC to users; the company said it recovered most of the smaller amount of funds that were actually claimed and set up a task force to strengthen controls.

South Korea’s Financial Supervisory Service opened a probe into Bithumb’s internal controls and risk management after the error. The court’s stay prevents immediate operational effects of the FIU suspension but does not resolve the underlying allegations or the outstanding fine. Judges will consider the exchange’s legal arguments before issuing a final decision.