South Korea’s Financial Supervisory Service (FSS) has reportedly initiated a formal investigation into Bithumb, a local cryptocurrency exchange, following a massive $40 billion accidental Bitcoin (CRYPTO: BTC) payout.

Regulators have informed Bithumb of the investigation, which began three days after an on-site inspection. The FSS has stated that it will take strict legal action against any activities that disrupt the market order, Yonhap News Agency reported on Tuesday, citing sources.

The investigation comes as lawmakers weigh new virtual asset legislation, with FSS Governor Lee Chan-jin saying concerns around “ghost coins” are a priority and that findings from the Bithumb probe…

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