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12 Feb 2026, 06:42

Ripple President Frames 2026 as Institutional Adoption at Scale for Ripple and XRP

Ripple President Monica Long has described this year as a defining period for Ripple and XRP due to institutional adoption at scale. Speaking at the XRP Community Day virtual event yesterday, Long’s remarks signal a strategic shift toward deeper integration with the enterprise and financial sectors. Visit Website

12 Feb 2026, 06:15

Bithumb Bitcoin Payout Blunder Sparks Urgent Legal Crisis and User Backlash

BitcoinWorld Bithumb Bitcoin Payout Blunder Sparks Urgent Legal Crisis and User Backlash SEOUL, South Korea – February 2025. The South Korean cryptocurrency landscape faces a significant legal and operational test following a critical error by one of its largest exchanges. Bithumb, a major digital asset platform, has engaged the prestigious law firm Kim & Chang after a mistaken Bitcoin payout on February 6th triggered financial losses for some users and potential unjust enrichment claims against others. This incident highlights the persistent operational risks within the crypto sector and the complex legal frameworks governing digital asset recovery. Bithumb Bitcoin Payout Error Triggers Immediate Fallout On February 6, 2025, Bithumb executed a transaction batch that erroneously distributed Bitcoin to a number of user accounts. The exchange confirmed the technical error shortly after the event. Consequently, some users who sold or transferred assets based on incorrect portfolio balances suffered direct financial losses. These users are now reportedly organizing a class-action lawsuit against the exchange, alleging negligence. Meanwhile, other customers received Bitcoin they were not entitled to, creating a separate recovery challenge for Bithumb. The company immediately initiated internal reviews and customer communications to address the situation. Bithumb’s operational history provides crucial context for this event. As one of South Korea’s oldest and largest crypto exchanges, it has navigated previous regulatory scrutiny and security incidents. This background underscores the high-stakes environment in which the current error occurred. The South Korean crypto market, known for its high retail participation and strict regulations, demands robust operational integrity from its licensed platforms. This mistake, therefore, carries weight beyond a simple technical glitch; it strikes at core issues of consumer protection and exchange reliability in a regulated financial landscape. Legal Precedents and Exchange Liability Legal experts point to previous cases in global jurisdictions where similar errors occurred. For instance, the 2019 incident where Crypto.com accidentally deposited over $7 million to a user in Australia set a precedent for recovery efforts. Courts typically treat such errors as cases of “unjust enrichment” or mistaken transactions. The legal principle is clear: recipients are generally obligated to return funds they were not legally entitled to receive. However, the practical enforcement, especially across international borders or with anonymous users, presents immense difficulties. Bithumb’s situation is further complicated by the volatile nature of Bitcoin’s price, as the value of the erroneously sent assets may have changed significantly since the distribution. Kim & Chang Consultation and Legal Strategy Bithumb’s decision to consult Kim & Chang signals the seriousness of the situation. Kim & Chang is South Korea’s largest and most influential law firm, renowned for its expertise in corporate law, finance, and emerging technology disputes. Their involvement suggests Bithumb is preparing for multifaceted legal proceedings, both defensive and offensive. A Bithumb official stated the company’s primary focus is on amicable recovery through negotiation, not immediate litigation. This approach aligns with standard corporate crisis management, seeking to minimize public relations damage and legal costs where possible. Nevertheless, the Chosun Biz report indicates that lawsuits for the return of unjust enrichment are likely if voluntary returns are incomplete. The legal strategy would involve identifying recipients, quantifying the exact Bitcoin amount owed, and filing civil claims. South Korea’s Act on the Regulation of Virtual Assets provides a framework for such disputes, though specific case law on mistaken crypto payouts remains limited. The firm’s expertise will be crucial in navigating these uncharted waters, potentially setting a landmark precedent for the domestic crypto industry. Unjust Enrichment Claims: Legal actions to reclaim assets from users who received the erroneous Bitcoin. Class-Action Defense: Strategies to address lawsuits from users who incurred losses due to the error. Regulatory Communication: Managing disclosures and compliance with South Korea’s Financial Services Commission (FSC). Asset Tracking: Utilizing blockchain analysis to trace the mistakenly sent Bitcoin, if moved. Impact on Users and Market Confidence The immediate impact bifurcates the affected user base. One group faces unexpected losses, while the other holds windfall gains they may be legally compelled to return. This creates a fraught dynamic for Bithumb’s customer relations. Trust, a foundational element for any financial service provider, is directly challenged. Market analysts observe that such incidents can influence user migration to competing platforms perceived as more operationally sound. Furthermore, the event occurs amid South Korea’s ongoing efforts to strengthen consumer protections in the crypto market through legislation like the Digital Asset Basic Act. Data from similar past incidents shows a temporary but noticeable effect on exchange metrics. Trading volumes can dip, and deposit/withdrawal activity often increases as users reassess platform risk. The long-term brand damage, however, depends almost entirely on the exchange’s response: transparency, speed of resolution, and fairness in compensating genuine victims. Bithumb’s handling of this crisis will be scrutinized by users, regulators, and competitors alike, serving as a case study in crypto exchange crisis management. Comparative Timeline of Major Crypto Exchange Operational Errors Exchange Year Incident Primary Resolution Crypto.com 2022 Erroneous $7M AUD deposit Court-ordered return after recipient refused r> Coinbase 2021 Duplicate trade credits error Internal correction and account adjustments Bithumb 2025 Mistaken Bitcoin payout Ongoing (Kim & Chang consultation, negotiation) Broader Implications for Exchange Operations This event forces a re-examination of internal controls at cryptocurrency exchanges. Key areas include transaction verification protocols, real-time audit systems, and disaster recovery plans for operational errors. Experts emphasize the need for multi-signature or multi-approval processes for bulk transactions, especially those involving high-value asset movements. The incident also highlights the importance of clear, pre-defined terms of service that outline procedures and liabilities in the event of a platform error. Such measures are becoming industry standards as the crypto sector matures and integrates with traditional financial oversight expectations. Conclusion The mistaken Bitcoin payout by Bithumb represents a critical junction for the South Korean cryptocurrency industry. It tests legal doctrines, operational resilience, and consumer trust simultaneously. The engagement of Kim & Chang underscores the complex legal battlefield ahead, involving potential class-action suits and unjust enrichment claims. Ultimately, the resolution of this Bithumb Bitcoin payout crisis will provide valuable lessons for exchanges worldwide on risk management, legal preparedness, and the paramount importance of safeguarding user assets in the digital finance era. The outcome will likely influence both regulatory policy and standard operational practices for years to come. FAQs Q1: What exactly happened with Bithumb’s Bitcoin payout? A1: On February 6, 2025, the South Korean crypto exchange Bithumb executed a technical error that mistakenly distributed Bitcoin to a number of user accounts. This led to some users receiving unintended funds and others experiencing losses due to incorrect account balances. Q2: Why is Bithumb consulting the Kim & Chang law firm? A2: Bithumb has consulted Kim & Chang, a top South Korean law firm, to navigate the legal complexities arising from the error. This includes potential defense against a class-action lawsuit from affected users and preparing claims to recover Bitcoin from recipients under unjust enrichment laws. Q3: Are users legally required to return the mistakenly sent Bitcoin? A3: Yes, based on legal principles of unjust enrichment and mistaken transaction, recipients are generally obligated to return assets they were not entitled to receive. Bithumb is first seeking amicable return but may pursue legal action if necessary. Q4: How does this affect Bithumb users who lost money? A4: Users who suffered financial losses due to the error—for example, by trading based on an incorrect balance—are reportedly preparing a class-action lawsuit against Bithumb to seek compensation for their damages. Q5: What does this incident mean for the broader cryptocurrency market in South Korea? A5: The incident highlights ongoing operational risks in crypto exchanges and may accelerate regulatory scrutiny and the implementation of stricter internal controls. It serves as a stress test for existing consumer protection measures within the country’s evolving digital asset framework. This post Bithumb Bitcoin Payout Blunder Sparks Urgent Legal Crisis and User Backlash first appeared on BitcoinWorld .

12 Feb 2026, 05:48

UK appoints HSBC for blockchain bond pilot

The Treasury appointed banking giant and law firm Ashurst to steer its digital gilt trial this year as Britain plays catch-up to Hong Kong and Luxembourg.

12 Feb 2026, 05:36

Lawmakers fear U.S. SEC enforcement drop linked to national security

Democrat lawmakers at a House Financial Services Committee hearing grilled U.S. SEC Chair Paul Atkins over the agency’s 60% drop in enforcement action since he took office. The hearing also touched on links between President Donald Trump’s family and several crypto ventures, flagging Trump family-tied memecoins as areas of concern. Massachusetts Democrat Rep. Stephen Lynch pointed out a few U.S. SEC lawsuit dismissals in cases against the crypto industry, citing the May 2025 U.S. SEC dismissal of the Binance case as one of many examples of dropped enforcement. California Representative Maxine Waters also noted that many of these cases were thrown out of court despite the fact that the U.S. SEC was winning. According to Rep. Waters, these dismissals are proof that the agency’s crypto enforcement program was well-grounded in the law before Atkins’ appointment. However, in response, the agency’s chair emphasized that the Commission has put in place a robust enforcement effort and is still bringing cases. He maintained that the U.S. SEC remains committed to pursuing enforcement where warranted. Lawmakers fear U.S. SEC enforcement drop linked to national security A notable development cited in the discussion involved the link between Abu Dhabi-based Aryam Investment 1, backed by Sheikh Tahnoon bin Zayed Al Nahyan, and Trump family-backed World Liberty Financial (WLFI). Aryam Investment 1 allegedly has a 49% stake in the startup behind WLFI. In this regard, Rep. Lynch argued that such ties could undermine trust in the crypto sector and complicate consumer protection. Democratic lawmakers have repeatedly raised concerns about the Trump family’s involvement in the crypto space and its potential to compromise U.S. national security. Cryptopolitan previously reported that Atkins, appointed by Trump, ended aggressive U.S. SEC enforcement for technical violations. The agency also dropped several crypto investigations tied to Trump donors. Rep. Waters, a well-known vocal critic of crypto and Trump, noted that nearly all of the crypto industry moguls who benefited from the dismissed regulatory suits and the pardons dished out millions of dollars to POTUS and his family. She described Trump’s family’s involvement in the crypto space as a potential backdoor for foreigners to bribe officials to influence Executive Branch policy. U.S. SEC enforcement shrinks under Trump and Atkins Source: Cornestone Research . Number of U.S. SEC crypto enforcement actions by initiation year 2013-2025. A recent Cornerstone Research report showed that 2025, which marked Paul Atkins’s first phase of tenure as the agency’s chair, saw a decline in crypto enforcement by the U.S. SEC, with only 13 actions initiated in 2025 after bringing a total of 33 crypto-related actions in 2024. 5 of the 13 actions were brought under former U.S. SEC chair Gary Gensler before he left office in January. Specifically, seven out of the 29 actions resolved in 2025 were dismossals under Atkins. Meanwhile, monetary fines imposed in 2025 against crypto market participants dropped to $142 million, representing less than 3% of the penalties imposed in 2024. The report noted that the U.S. SEC’s focus has shifted away from broad registration theories and toward fraud cases grounded in clear consumer harm, which are easier to argue in court. Robert Letson, a principal at Cornerstone Research and one of the report’s authors, also noted that the drop in enforcement actions under Chair Atkins’ tenure reflects a shift in the U.S. SEC’s approach to digital asset oversight. Letson added that his research firm will continue to watch digital asset regulation closely as it evolves in 2026, consistent with the priorities laid out in early 2025. According to Cornerstone Research, legal observers have tracked a broader reset in tone across the U.S. SEC since the leadership change in April 2025, when Atkins took office. However, the research firm also observes that the next phase of U.S. crypto oversight may hinge more on the regulatory guidance or negotiated standards the agency chooses to bring to the table in 2026, rather than on surprise lawsuits. The smartest crypto minds already read our newsletter. Want in? Join them .

12 Feb 2026, 05:30

SEC Under Fire Over Sharp Drop in Crypto Cases

Lawmakers specifically pointed to a reported 60% drop in cases and the dismissal of high-profile lawsuits like the agency’s case against Binance. Democrats, including Representatives Stephen Lynch and Maxine Waters, raised concerns about weakened oversight, potential political motivations behind dropped cases, and foreign investment tied to Trump-linked crypto ventures like World Liberty Financial. Crypto Crackdown Slows US lawmakers pressed Securities and Exchange Commission (SEC) Chair Paul Atkins during a congressional hearing on Wednesday, and raised concerns over a sharp decline in crypto-related enforcement actions and the dismissal of several high-profile cases since the change in leadership under President Donald Trump. Representative Stephen Lynch, a Democrat from Massachusetts, said enforcement actions have fallen by roughly 60% since Trump took office and appointed Atkins to lead the agency. Lynch pointed to the SEC’s decision in May of 2025 to move to dismiss its lawsuit against Binance as an example of what he described as a retreat from crypto oversight. He argued that pulling back on enforcement risks undermining investor confidence at a time when the digital asset market is already facing volatility. Lynch also raised alarms about foreign investment tied to World Liberty Financial, a decentralized finance platform reportedly linked to the Trump family. According to recent reports, Aryam Investment 1, an Abu Dhabi-based investment vehicle backed by UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, acquired a 49% stake in the startup behind WLFI. Lynch suggested that such foreign involvement, along with meme coins launched by Trump family affiliates, poses reputational and national security concerns. He added that the reputational damage to the SEC itself could further weaken market confidence. However, Atkins pushed back against claims that the agency softened its stance. “We have a very robust enforcement effort, and we are bringing cases,” he said, and rejected the notion that the agency abandoned oversight of the sector. The exchange revived earlier criticism from Democratic lawmakers regarding the Trump family’s growing involvement in the crypto space. Some Democrats argued that such ties could create conflicts of interest or open avenues for foreign influence over US policy. The issue is particularly sensitive as the country heads into a midterm election year, with control of Congress potentially at stake. Representative Maxine Waters of California, who is a longtime critic of both Trump and the cryptocurrency industry, accused the administration of politically motivated decisions to drop cases. She claimed that several lawsuits were dismissed despite the SEC having made progress in court, suggesting that the enforcement program was legally sound. Waters also alleged that crypto executives who benefited from pardons or regulatory relief contributed millions of dollars to Trump and his family. She has repeatedly called for investigations into the president’s family-linked crypto ventures, and described them as potential vehicles for foreign entities to exert influence over the executive branch. While Republicans lean towards a lighter regulatory touch, Democrats warned that scaling back enforcement could expose consumers to fraud and weaken national security safeguards.

12 Feb 2026, 05:05

The U.S. House voted 219–211, with six Republicans joining Democrats, to rescind Trump’s tariffs.

The U.S. House of Representatives voted 219–211 to rescind President Donald Trump’s tariffs on Canadian goods, with six Republicans joining Democrats in a rare bipartisan rebuke. The vote demonstrates the growing opposition to Trump’s trade policies among his own party, despite the measure’s slim chances in the Senate and probable veto. Donald Trump has imposed several tariffs on Canada since his re-election. Last month, Trump threatened to impose a 100% import tax in reaction to Canada’s proposed trade agreement with China. “If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.,” Trump said on Truth Social. Democrats challenge Trump as midterms approach Democrats urged their Republican counterparts to oppose Trump, who has taken over the party, before the vote. “Today’s vote is simple, very simple: Will you vote to lower the cost of living for the American family or will you keep prices high out of loyalty to one person, Donald J Trump?” said Democratic Representative Gregory Meeks of New York, who authored the resolution. The vote was cast as the U.S. begins its crucial midterm election season. The general election takes place in November after the primaries start in March. Every member of the House of Representatives will be represented in their constituency on the ballot. Trump vowed to ruin any Republican’s chances of winning the election if they supported the plan on Wednesday. Trump wrote on Truth Social during the House floor vote, “Any Republican, in the House or the Senate, that votes against tariffs will seriously suffer the consequences come Election time.” Trump added that no Republican should be held accountable for undermining the economic and national security benefits that tariffs have provided. The U.S. President also accused Canada, one of the United States’ closest allies and largest trading partners, of mistreating its neighbor to the south. Trump further stated on Truth Social that Canada has historically exploited the U.S. in trade and is one of the hardest nations to work with, especially on issues at the northern border. He pushed Republicans to keep tariffs in place, arguing that they are an easy win for the U.S. House votes, legal challenges mount against Trump’s tariffs The vote followed an unsuccessful attempt by U.S. House Speaker Mike Johnson, a Trump friend in Congress, to prevent members from discussing Trump’s tariffs on the chamber floor. With Republicans holding a thin majority in the U.S. House, six Republican representatives, including Brian Fitzpatrick of Pennsylvania, Don Bacon of Nebraska, and Thomas Massie of Kentucky, joined a nearly united Democratic front, contributing enough votes to ensure approval. Gregory Meeks, a Democrat, introduced the bill, claiming that Trump had “weaponized tariffs” against allies and caused global economic instability. Meeks said before the vote that these tariffs have not only severely damaged the U.S. relationship with Canada by bringing Canada closer to China, but also increased domestic prices. Representative Don Bacon of Nebraska, one of the six Republicans, voted with Democrats to approve the legislation. Before the vote, he stated that “tariffs have been a ‘net negative’ for the economy and are a significant tax that American consumers, manufacturers, and farmers are paying.” Trump’s tariffs are also facing legal scrutiny, as the U.S. Supreme Court is set to rule in a lawsuit challenging the president’s authority to impose the taxes. The White House’s defense of the import duties, which the president claimed are required to repair America’s manufacturing base and correct its trade imbalance, was questioned by the majority of the justices, including several conservatives. A group of states and many small businesses are contesting the measures, arguing that the president has overreached himself in enforcing the levies, which are effectively taxes. America’s highest court typically takes months to issue significant rulings, with a conservative majority of 6-3, but many anticipate it will act more quickly in this case. This is also viewed as the first significant test of the Trump administration’s efforts to increase presidential power. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program