The Provenance blockchain hit a new milestone on Wed. Feb. 11, as its total value locked (TVL) climbed to an all-time high of $1.2 billion.

This marks a 7% increase in TVL over the past 24 hours, and a roughly 570% jump since early November 2025, when TVL stood at about $179.9 million, according to DeFiLlama data.

Notably, Figure Markets is currently the only protocol tracked on Provenance by DeFiLlama, meaning the network’s entire TVL is essentially tied to Figure’s activity. Figure Markets is described as a decentralized custody platform, which offers spot trading, crypto-backed lending, and yield-bearing assets.

DeFiLlama data shows Figure Markets’ TVL at approximately $1.22 billion, with about $301 million currently borrowed. The protocol has generated roughly $3.84 million in annualized fees and revenue, while 30-day decentralized exchange volume stands at approximately $2.08 billion.

Figure Technologies, the entity behind Figure Markets and Provenance, currently leads in the tokenized private credit space, accounting for $15 billion of the market’s $20 billion active loans, per RWAxyz. The company is also the largest non-bank home equity line of credit (HELOC) originator in the U.S.

Meanwhile, Provenance’s native token, HASH, was the second-best performing token on the day, rising about 8% in 24 hours to trade near $0.018, according to CoinGecko. Figure’s HELOC token is currently trading at $1.02, down 1% on the day.

Provenance’s TVL increase comes amid renewed attention towards tokenized real-world assets (RWAs), which have grown 14% over the past month to a distributed asset value of over $24.7 billion.

Experts are Divided

Still, not everyone views the milestone as a structural breakthrough. Brian Huang, co-founder of Glider, told The Defiant that tokenizing assets on a standalone or siloed blockchain does not necessarily increase their utility.

“Assets aren’t any more useful on chain than offchain unless they have composability. Provenance has no composability,” Huang said. “Overall, I wouldn’t read into the $1.2 billion in assets. In the long term, tokenization will favor open protocols like Ethereum and Solana.”

Danny Nelson, Research Analyst at Bitwise Asset Management, took a different viewpoint, calling Provenance’s business “very real.”

“It’s the secret sauce fueling Figure Markets’ rise to become the largest non-bank home equity loan (HELOC) business in the U.S,” Nelson said. “Figure Markets purpose built Provenance Chain to handle its HELOCs.”

He explained that Figure represents all loan-related paperwork, contracts, and finances as tokens on the blockchain. “There, it can process everything much faster than a traditional lending business can,” Nelson added. “Figure is cutting the costs of creating each loan, and speeding up its processing, by handling the entire loan lifecycle on Provenance.”

Provenance’s growth follows a January announcement from Figure launching the On-Chain Public Equity Network (OPEN) on Provenance. The move allowed companies to list their equity natively on-chain.

“Unlike other tokenization efforts, OPEN equities are blockchain-registered, not a tokenized version of Depository Trust and Clearing Corporation (DTCC) securities,” the announcement reads.

Figure said its own stock will be the first public equity trading natively on the blockchain, with market makers including Jump Trading preparing to support the platform.

The Defiant reached out to Figure and Provenance for comment, but has not heard back at the time of publishing.

In a House Financial Services Committee hearing on Wednesday, lawmakers grilled Securities and Exchange Commission chair Paul Atkins over the agency’s crypto enforcement record and the fate of several cases that have been dismissed since leadership changes. The session highlighted a growing debate about the SEC’s approach to a fast-evolving sector as enforcement activity appears to have cooled under the current regime. Representative Stephen Lynch, a Democrat from Massachusetts, cited a roughly 60% drop in enforcement actions since Atkins took the helm, pointing to the dismissal of several high-profile lawsuits, including the Binance case in May 2025, as indicators of shifting dynamics in the agency’s crypto strategy.

The hearing also touched on connections between the Trump family and various crypto ventures, with Lynch flagging foreign investments and memecoins tied to the family as areas of concern. A notable development cited during the discussion involved Aryam Investment 1, an Abu Dhabi-based vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan, which reportedly acquired 49% of the startup behind World Liberty Financial (WLFI) — a decentralized finance platform linked to the Trump family. Lynch argued that such ties could undermine trust in the sector and complicate consumer protection, while Atkins maintained that the SEC remains committed to pursuing enforcement where warranted. World Liberty Financial (WLFI) was referenced in the discussions as a focal point of these concerns, a project that has drawn scrutiny amid international investment links and crypto-market activity.

“This is hurting the crypto industry, all these scams. Look at crypto today. I think it’s down 25% in the last month. People are losing trust, and it’s not good for crypto. It’s certainly not good for consumers, and it’s awful the reputational damage that the SEC is suffering.”

The SEC chair responded by reiterating the agency’s stance that enforcement actions continue where they are warranted and that the agency’s program remains robust. Atkins stressed ongoing cases and emphasized the normalization of enforcement efforts in the crypto space, even as some lawmakers pressed for a clearer accounting of stalled or dismissed actions. The exchange underscores a broader, bipartisan challenge: how to balance consumer protection with a market that is still evolving in terms of products, custody, and governance structures.

The discussion unfolded as the U.S. political calendar—set against a midterm election backdrop—adds complexity to crypto policy dynamics. Lawmakers suggested that a shift in congressional control could affect the pace and nature of market-structure legislation and other regulatory initiatives that touch the crypto industry. The hearing also touched on bilateral concerns about the influence of foreign actors in U.S. crypto projects, and how such links might shape lawmakers’ willingness to push ahead with comprehensive regulatory frameworks in the near term.

California Democrat Maxine Waters, who has been a persistent critic of both the Trump orbit and parts of the crypto ecosystem, pressed Atkins on the implications of pardons and dropped lawsuits for the credibility of the SEC’s enforcement program. “These cases were dismissed, despite the fact that the SEC was winning in court, proving that the SEC’s crypto enforcement program was well-grounded in the law,” Waters contended, underscoring concerns about the political contours surrounding enforcement decisions. The discussion touched on associations between pardoned executives and crypto ventures that have contributed to political fundraising, a point Waters framed as a broader issue of transparency and accountability in the sector.

The deliberations also highlighted broader questions about how foreign investment and purported national-security considerations intersect with crypto innovation. The conversation around WLFI and related projects was framed as part of a wider debate about whether foreign influence could shape policy at a moment when the sector is seeking mainstream adoption. The hearing did not resolve these questions, but it did illuminate the ongoing rift between calls for stronger enforcement and concerns about how aggressively regulators should pursue actions when cases appear to be in flux or subject to political considerations.

Why it matters

For investors and builders in the crypto space, the hearing underscores the evolving risk landscape around regulatory expectations. The fact that enforcement actions have declined by a substantial margin since Atkins took office raises questions about the SEC’s current priorities and the factors that drive case selection in a sector that is both technologically complex and rapidly changing. The dismissal of prominent cases—such as the Binance lawsuit—suggests that the regulatory environment can shift in meaningful ways, with potential implications for how market participants assess risk, pursue compliance, and engage with U.S. authorities.

At the same time, the linkage of crypto ventures to political figures and foreign investment underlines a broader narrative about governance, transparency, and consumer protection in the industry. The WLFI situation, in particular, places a spotlight on how geopolitical dynamics and high-profile associations might influence perceptions of legitimacy and safety in decentralized finance platforms. While lawmakers are calling for vigilance against scams and opaque schemes, others warn against overreach that could chill innovation or raise the hurdle for legitimate crypto projects seeking to operate within the U.S. regulatory framework.

As the midterm year unfolds, the conversation around crypto enforcement is likely to remain tightly connected to broader regulatory ambitions and the political calculus surrounding the Democratic and Republican coalitions in Congress. The balance between rigorous scrutability and enabling responsible innovation will continue to shape the direction of policy, enforcement priorities, and the market’s readiness to adopt new technologies and products in a compliant, transparent manner.

Beyond the immediate hearing, observers are watching for how the SEC will calibrate its approach to crypto assets, custody, exchanges, and complex DeFi structures in forthcoming rulemakings and guidance. The tension between enforcement actions and industry confidence is a key barometer for overall market sentiment—a factor that could influence liquidity, participation, and the pace of institutional involvement as the sector seeks clearer guardrails and consistent regulatory expectations.

Related coverage has tracked ongoing discussions about WLFI and related topics, including how foreign involvement in crypto ventures may intersect with national security considerations and regulatory oversight. As the ecosystem matures, stakeholders will be looking for signals on whether enforcement focus will intensify in certain sub-sectors or remain steady as policymakers evaluate the efficacy and proportionality of regulatory actions in a rapidly evolving landscape.

What to watch next

• Follow-up statements or actions from the SEC after the hearing, including any new policy guidance or adjustments to enforcement priorities.
• Updates on WLFI-related developments and any regulatory or legal steps involving Aryam Investment 1’s stake and its connections.
• Potential movements on market-structure legislation or other crypto regulatory bills during the current congressional cycle.
• Next round of congressional scrutiny or inquiries into crypto governance and cross-border links to high-profile projects.

Sources & verification

• YouTube video: US House Committee on Financial Services—Lynch questions SEC Chair Paul Atkins. https://www.youtube.com/watch?v=jAq7zM2sTuE
• Court documents: Motion to dismiss the Binance case. https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.301.0.pdf
• Cointelegraph: SEC dismisses lawsuit against Binance (filings show). https://cointelegraph.com/news/sec-dismisses-lawsuit-against-binance-filings-show
• Cointelegraph: UAE-backed firm buys 49% Trump-linked World Liberty (WLFI). https://cointelegraph.com/news/uae-backed-firm-buys-49-percent-trump-linked-world-liberty-wsj
• Cointelegraph: Trump-linked WLFI probe and UAE investment. https://cointelegraph.com/news/trump-wlfi-probe-500-million-investment-from-uae-official

Congressional hearing highlights a shift in crypto enforcement and governance

The hearing laid bare a tension that will likely continue to define the crypto policy conversation: regulators assert that they will aggressively pursue violations where the law supports it, while lawmakers—and a portion of the industry—argue that the enforcement regime should be predictable, proportionate, and cognizant of the sector’s growth potential. Atkins reiterated the SEC’s commitment to due process and to enforcing rules designed to protect investors, even as several high-profile cases have fallen away or stalled. Lynch’s remarks framed these outcomes within a broader concern about the impact on public trust and the long-term legitimacy of crypto markets. The exchange also underscored how the regulatory narrative around foreign involvement, national security, and consumer protection intersects with ongoing debates about the appropriate pace of rulemaking and the extent of enforcement discretion.

As the discussion moves forward, observers will be watching for concrete signals about how the SEC plans to align its enforcement posture with the evolving technological landscape—including DeFi, stablecoins, and non-custodial products—and how lawmakers on both sides of the aisle intend to shape the regulatory architecture that will govern these innovations in the years to come.

“Really nice chart, pure strength,” one popular analyst stated.

The meme coin pippin (PIPPIN) once again defied the ongoing bearish environment in the cryptocurrency market, with its price rallying by roughly 30% over the past 24 hours.

It has become a point of interest for well-known analysts who believe further short-term gains could be forthcoming.

Rising Through the Ranks

Earlier today (February 11), PIPPIN’s valuation climbed to as high as $0.46, marking the highest level since the end of January. Currently, it trades at around $0.44 (per CoinGecko’s data), representing a whopping 144% spike on a weekly scale.

Its market capitalization soared well above $400 million, making PIPPIN the 100th-largest cryptocurrency. Over the past few weeks, it flipped Pudgy Penguins (PENGU), dogwifhat (WIF), and FLOKI (FLOKI) and now stands as the eighth-biggest meme coin. The undisputed leader in the realm remains Dogecoin (DOGE), whose market cap exceeds $15 billion.

According to the analyst who goes by the X moniker Sjuul | AltCryptoGems, PIPPIN has more fuel to post additional gains, setting the next target at around $0.50.

“Really nice chart, pure strength! Extremely well-respected support and resistance levels, and full ripping after that deviation! If I smell this right, resistance should be next,” he said.

Earlier this week, the market observer Satori also put PIPPIN on their watchlist, claiming “a much stronger breakout” might be on the horizon.

Investors Should Beware

While the asset has undoubtedly turned into one of crypto’s sensations in the past few days, those planning to invest in it must tread lightly. First, meme coins are notorious for their high volatility, meaning PIPPIN can make a sudden move and crash by double digits in a short period.

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Second, some analysts on X have warned that the token is primarily driven by speculation, whereas its utility and use cases are questionable (to say the least). Critics like Diane De crypto went even further, calling PIPPIN “the biggest money laundering event happening right in front of your eyes.”

The asset’s Relative Strength Index (RSI) can also be interpreted as a warning sign for investors. The technical analysis tool measures the recent speed and magnitude of the latest price changes, and traders often use it to spot potential reversal points.

It ranges from 0 to 100, and ratios above 70 indicate PIPPIN is overbought and could be due for an imminent pullback. On the contrary, anything beneath 30 might be viewed as a buying opportunity. Currently, the RSI stands at approximately 72.

Open interest (OI) across crypto prediction markets just hit $1 billion for the first time, a surge likely fueled by increased activity around the 2026 Super Bowl.

According to data from Artemis, open interest across platforms, Polymarket, Kalshi, Limitless, Opinion, and others, jumped above $1.1 billion for the first time on Feb. 7, setting a new all-time high. OI indicates the value of all currently active positions — in this case, the “yes” or “no” positions across predictions — that have yet to be resolved, making it an indicator of capital inflow and liquidity.

As for spot volume, it also reached a new historic record of $1.4 billion across platforms, with Kalshi generating $800 million and Polymarket about $311 million on Super Bowl Sunday, Feb. 8, Artemis data shows.

Digging into sectors where users placed the most bets, sports led with $375.3 million, while politics was close behind at $359.7 million, and culture trails at $84.5 million, according to data from crypto venture capital firm Paradigm’s new dashboard, which tracks liquidity across sectors on Polymarket and Kalshi, the two largest marketplaces by OI and trading volume.

But the growing interest in placing bets on real-world outcomes doesn’t come without risks. In a recent report, analysts at blockchain security firm CertiK warned that despite the surge, prediction markets are still exposed to security risks like oracle attacks, admin key vulnerabilities and front-running.

The firm also warned that artificial volume on prediction markets reached 60% on some platforms “during airdrop farming peaks, distorting liquidity metrics, while probability outputs remained reliable for forecasting.”

The spike in prediction market OI coincided with news that Jump Trading, a high-frequency trading firm, is reportedly set to gain small stakes in both Kalshi and Polymarket in exchange for providing liquidity, Bloomberg reported on Feb. 9, citing sources familiar with the matter.

Bitcoin encountered renewed selling pressure at the key $70K resistance level, resulting in a clear rejection. As a result, the price action has transitioned into a consolidation phase above the critical $60K support zone, with further fluctuations likely in the near term.

Bitcoin Price Analysis: The Daily Chart

On the daily timeframe, BTC’s rebound from the $60K demand region stalled at the $70K resistance, where sellers regained control. This level closely aligns with the midline of the descending channel, reinforcing its technical significance. A decisive break above this dynamic boundary would be required to restore bullish momentum.

For now, Bitcoin remains confined within a defined range, bounded by the static $60K support and the channel’s dynamic mid-boundary near $70K. Consolidation appears to be the dominant scenario, with a breakout on either side likely to trigger a more substantial directional move.

BTC/USDT 4-Hour Chart

On the 4-hour chart, the rejection at $70K is more pronounced, with the asset retracing toward the $66K area. A notable bullish divergence between price action and the RSI suggests weakening downside momentum, increasing the probability of a short-term range-bound structure between the $60K and $75K levels.

However, the internal resistance at the channel’s midline continues to cap upside attempts, limiting bullish follow-through and keeping the broader structure neutral-to-bearish until a clear breakout materializes.

Sentiment Analysis

Bitcoin funding rates across all exchanges have recently flipped deeply negative, reaching extreme levels around -0.014 while the price dropped toward the $66.9K region. This sharp shift into negative territory signals aggressive short positioning, as traders are now paying a premium to hold bearish bets.

Historically, such extreme negative funding prints tend to appear during panic-driven sell-offs, when the market becomes crowded on the short side. The current structure suggests that derivatives traders are heavily positioned for further downside following the breakdown below the $70K area.

From a positioning standpoint, this creates conditions for a potential short squeeze if spot demand steps in. When funding remains deeply negative while price stabilizes, it often reflects exhaustion in selling pressure. However, if price continues to trend lower while funding stays negative, it confirms sustained bearish dominance rather than a temporary flush.

At this stage, the funding data highlights elevated fear and aggressive short exposure, placing the market in a sensitive zone where volatility expansion, either through continuation or a squeeze, becomes increasingly likely.

Institution-focused crypto lender and liquidity provider BlockFills is blocking its clients’ deposits and withdrawals, a move reminiscent of previous crypto downturns.

The Financial Times first reported the development, which comes after BTC reached as low as $60,000 on Feb. 5, a 52% drop from the asset’s all-time high in October.

“In light of recent market and financial conditions, and to further the protection of clients and the firm, BlockFills took the action last week of temporarily suspending client deposits and withdrawals. Clients have been able to continue trading with BlockFills for the purpose of opening and closing positions in spot and derivatives trading and select other circumstances,” the company said in a statement earlier today.

While details are scarce, some consider the move reminiscent of 2022, when large crypto lenders and exchanges that proved insolvent followed a similar process.

The BlockFills representative who spoke with FT cited platform liquidity as an issue and stated in the article that “Management has been working hand in hand with investors and clients to bring this issue to a swift resolution and to restore liquidity to the platform.”

BlockFills is an institution-focused trading platform and crypto lender based in Chicago that recorded $60 billion in trading volume in 2025 and is backed by a crypto-native private equity firm, Susquehanna.

HONG KONG — Last week’s sharp crypto sell-off was less a replay of 2022’s scandals and more a macro-driven unwind spilling over from traditional finance, according to market participants at Consensus Hong Kong 2026.

“After Oct. 10th, a lot of people had already reduced risk,” said Fabio Frontini, founder of Abraxas Capital Management. “This is just a spillover from TradFi entirely… it’s all interconnected now.”

Panelists pointed to the unwinding of yen carry trades as a key catalyst. Thomas Restout, group CEO of B2C2, described the mechanics: investors borrow in low-interest-rate currencies like the yen and deploy that capital into higher-yielding or risk assets, including bitcoin, ether, gold and silver.

“What does that mean? That means people borrow currencies that have cheap interest rates, and they use it to put on carry trades,” Restout said.

The yen carry trade refers to investors borrowing Japanese yen at low interest rates, converting it into other currencies then investing into higher-yielding assets. However, should yen strengthen, investors have to buy it back to repay loans, causing the trade to “unwind” and trigger market volatility.

As yen rates rose, borrowing costs increased. At the same time, higher volatility triggered steeper margin requirements. “In metals, it went from 11% margin requirements to 16%,” Restout added. This forced some players to unwind positions as collateral demands surged.

The result was broad pressure across risk assets, not just crypto.

Exchange-traded funds (ETFs) tracking bitcoin also saw heavy volumes during the downturn, though panelists pushed back on the idea of full-scale institutional capitulation. At their peak, bitcoin ETFs totaled roughly $150 billion in assets; today they still hold around $100 billion, Restout said. Net outflows since October are about $12 billion—significant, but modest relative to total assets.

“If anything, it means that the money is changing hands,” Restout said, suggesting rotation rather than wholesale exit.

Looking ahead, Emma Lovett, credit lead for Market DLT at J.P. Morgan, said 2025 marked a regulatory inflection point. A more permissive U.S. backdrop has accelerated experimentation beyond private, permissioned blockchains toward public chains and stablecoin settlement.

“What we started to see in 2025… is the introduction of using public chains and… stable coins for the settlement of traditional securities,” she said, signaling a deeper convergence of TradFi and crypto infrastructure in 2026.

HONG KONG — Consensus Hong Kong’s first day wrapped up with the promise of new financial products tied to crypto in the Special Administrative Region of China.

Hong Kong’s chief executive and financial secretary and the CEO of the Securities and Futures Commission all laid out their priorities for regulation, saying Hong Kong would begin issuing stablecoin licenses next month, publish a framework for perpetual contracts and otherwise work to develop the local crypto economy.

Financial Secretary Paul Chan said he sees AI as one of a handful of trends maturing at this stage: “As AI agents become capable of making and executing decisions independent to it, we may begin to see the early forms of what some call the machine economy, where AI agents can hold and transfer digital assets, pay for services and transact with one another onchain.”

Skybridge Capital’s Anthony Scaramucci said he would stick to a prediction that bitcoin BTC$67,451.79 would hit $150,000, pointing to legislation under negotiation in the U.S.

“I think once that legislation does pass, it’s gonna open a floodgate of activity in the money center, banks in the United States,” he said. “If we’re just in the four-year cycle, then bitcoin is starting to reascend at the end of the year, starting in the fourth quarter.”

Consensys’ Joe Lubin said Ethereum is anti-fragile, which is important for a decentralized foundation that can support further decentralized finance (DeFi), which in turn would let developers “build, rearchitect the systems of the world essentially on sounder financial and trust foundations.

“DeFi is roughly as safe as traditional finance,” he said.

Nigel Feetham, Gibraltar’s minister for justice, trade and industry, said smaller jurisdictions regulating crypto are focused on ensuring market safety and integrity.

“We are jealous about guarding our reputation because all it takes is one market failure, if I can put it that way, and clearly everybody gets damaged by that. Once you are licensed in a jurisdiction, you become a stakeholder, and therefore we have an obligation to ensure that we look after all our stakeholders.”

Recent market action also attracted speakers’ attention.

Bitmine’s Tom Lee, whose company is sitting on a nearly $8 billion unrealized loss through its ether ETH$1,951.32 holdings, said people “should be thinking about opportunities here instead of selling.”

“Gold is a meme,” said Selini’s Jordi Alexander.

Consensus’ final day will see panels focused on scaling the Bitcoin, Ethereum and Solana blockchains with a keynote by World Liberty Financial’s Zak Folkman and a fireside conversation with the Chairman of Pakistan’s Virtual Assets Regulatory Authority, Bilal Bin Saqib.

Crypto and banks clashed over stablecoin rewards, with no agreement reached ahead of the March 1 deadline.

Banks and crypto executives met again at the White House this week to settle a dispute over stablecoin rewards, but the talks ended without agreement ahead of a March 1 deadline set by the administration.

The standoff centers on whether crypto firms can offer yield on dollar-pegged tokens without draining deposits from traditional banks.

White House Talks Narrow Gaps But Yield Ban Remains Sticking Point

Details from the closed-door meeting were first shared on X by journalist Eleanor Terrett, who cited banking and crypto sources present in the room. According to her, participants described the session as “productive,” though no compromise was reached.

She added that banking groups arrived with a written set of “yield and interest prohibition principles.” The document argued that payment stablecoins, as outlined in the GENIUS Act, were designed strictly as payment instruments, not interest-bearing products. It also called for a broad ban on “any form of financial or non-financial consideration” tied to holding or using a payment stablecoin.

The handout allows for only extremely limited exemptions and warns against deposit flight that could reduce credit availability for communities. It also proposed civil penalties for violations and strict rules against marketing stablecoins as deposits or FDIC-insured products.

One banking concession, according to Terrett’s sources, was the inclusion of language allowing for “any proposed exemption,” a shift from earlier refusals to discuss carve-outs at all.

Still, the scope of permissible activities remains disputed, with crypto firms pushing for broader definitions that would let platforms reward users under certain conditions, while banks want those definitions drawn more narrowly.

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The meeting was led by Patrick Witt, executive director of the President’s Crypto Council. Attendees included Coinbase Chief Legal Officer Paul Grewal, Ripple’s Stuart Alderoty, a16z’s Miles Jennings, and representatives from Paxos and the Blockchain Association.

Major banks present included JPMorgan, Goldman Sachs, Bank of America, Citi, Wells Fargo, PNC, and U.S. Bank, along with trade groups such as the American Bankers Association.

Alderoty later wrote on X that “compromise is in the air,” though others described the outcome as unresolved. Further discussions are expected in the coming days, although it is unclear whether another White House meeting will occur before the deadline.

Deposit Fears Shaping the Broader Legislative Fight

The yield debate is unfolding against a wider push to pass a long-delayed crypto market structure bill. Last week, crypto firms floated concessions, including sharing stablecoin reserves with community banks or allowing them to issue their own tokens, in an effort to ease opposition.

However, banks argue that yield-bearing stablecoins could pull funds from checking and savings accounts, weakening a primary source of lending capital. Analyst Geoff Kendrick warned that stablecoins could draw up to $500 billion in deposits from banks in industrialized nations by 2028.

South Korea’s Bithum admitted Wednesday that severe flaws left the trading platform’s internal system wide open to potential sabotage and that it failed to prevent the mistaken transfer of $40 billion in bitcoin to customers, according to Reuters.

The blunder, which triggered the price of bitcoin to plunge by 17% on Bithumb, according to Reuters, consisted of the country’s second-largest crypto trading platform accidentally giving away 620,000 bitcoins to customers instead of just 620,000 won (roughly $428).

The Financial Supervisory Service said Sunday it will start investigations into “high-risk” practices that undermine market order, including large-scale price manipulation by so-called whales, trading schemes tied to suspended deposits and withdrawals and coordinated pump tactics fueled by social media misinformation. The watchdog also said it plans to build tools that automatically extract suspicious trading patterns at the second and minute levels, alongside text-analysis systems using artificial intelligence to flag potential market abuse.

Bithumb CEO Lee Jae-won said the giveaway amounted to 15 times the crypto trading platform’s 42,000 bitcoins, mainly due to a 24-hour lag in processing transactions and delayed updates to its crypto holdings balance. “We are acutely aware of the deficiency in internal system control,” Lee told a parliamentary committee hearing recently.

The CEO admitted that Bithum’s policy of ensuring the volume of assets to be transferred matched its actual holdings failed, and that the amount was not earmarked in a separate account to ensure the transfer’s safety.

The exchange has recovered most of the bitcoin, although 1,786 that were sold within minutes before the exchange froze customers’ accounts are still missing, the Reuters report added. The customers who sold those missing bitcoin are legally bound to return them.

Members of parliament expressed dismay at the lack of government and corporate oversight in the country’s virtual assets market, which is one of the most active in the world by trading volume. According to a recent report, cryptocurrency has become a primary investment asset in South Korea, with investor numbers rising to 10 million and exchanges such as Upbit and Bithumb generating revenues in the trillions of won.