Crypto News Round-Up — February 2026

This week’s crypto headlines highlight both major disruptions and growing mainstream interest. A South Korean exchange accidentally distributed tens of billions of dollars worth of bitcoin, and security researchers warned of AI-driven scams targeting crypto firms. At the same time, institutional investors are laying the groundwork for new digital-asset products. The following stories explain each development and why it matters for crypto markets.

• South Korean exchange glitch sends $44B in Bitcoin
• North Korean hackers use AI deepfakes against crypto firms
• Regulators call for tighter crypto oversight
• Institutional adoption of crypto grows
• Pending crypto ETFs attract attention

South Korean exchange glitch sends $44B in Bitcoin

South Korea’s largest crypto exchange Bithumb accidentally gave each eligible user thousands of bitcoin instead of a small cash bonus during a Feb. 7 giveaway, according to media reports (Reuters). The error occurred when a staff member typed “BTC” instead of Korean won for promotional payouts. As a result, roughly 620,000 bitcoins — about $44 billion at current prices — were briefly credited to customer accounts before the exchange halted trading (Tom’s Hardware). Bithumb says it was a technical slip, not a hack, and that it recovered 99.7% of the mistakenly issued bitcoin almost immediately.

South Korean regulators noted that the incident exposed new risks in virtual asset markets. The Financial Services Commission said the glitch “has exposed the vulnerabilities and risks of virtual assets” (Reuters). This high-profile mistake underscores how even routine promotional events can have outsized effects on crypto markets.

Why it matters:

• The snafu shows how a simple technical error at an exchange can flood users with enormous funds, highlighting the need for rigorous safety checks on trading software.
• Nearly all of the coins were recovered and regulators are investigating, but the panic last-minute trading restrictions affected hundreds of users, showing the leverage exchanges have over markets.
• The episode illustrates legal safeguards: Korean law requires recipients to return assets created out of thin air, which helped ensure the purported $44 billion did not permanently damage the system.

North Korean hackers use AI deepfakes against crypto firms

Security researchers have uncovered a sophisticated new social engineering campaign targeting cryptocurrency companies. In a report summarized by TechRadar, Google’s Mandiant team says North Korean-backed hackers (UNC1069) are using AI-driven deepfake videos to trick employees into installing malware. The attackers begin by hacking a C-level executive’s communication app and sending incoming employees a bogus Zoom meeting link. At the fake meeting, targets see an AI-generated video of their boss claiming audio problems and asking them to run a remote “fix” program. In reality, the program is malicious: installing new backdoors and cryptominers on the victim’s computer (TechRadar). Mandiant observed at least seven new malware strains used in this campaign against Windows and macOS systems in the crypto sector (TechRadar).

Why it matters:

• This attack demonstrates that even leading crypto firms can be duped by human-like illusion – AI deepfakes make social engineering far more convincing.
• The goal was to steal cryptocurrency assets and credentials, reminding companies that they must verify identity and use strict cybersecurity protocols.
• The use of state-sponsored tactics and AI tools signals an escalation in the threat landscape; every crypto business now needs to defend against very sophisticated phishing schemes.

Regulators call for tighter crypto oversight

The Bithumb incident has put regulators worldwide on alert about crypto exchange controls. South Korea’s agency explicitly said the glitch “exposed vulnerabilities and risks of virtual assets” (Reuters). Local financial authorities noted that cryptocurrency trading is still only “partially legislated, and close to becoming fully legalized” (Tom’s Hardware), meaning much of the market still lacks clear rules. In comments reported by Reuters, officials said such incidents underscore the need for stronger oversight of exchanges, promotional campaigns and custody practices. Similar concerns are being voiced in other jurisdictions as policymakers look for ways to protect investors without stifling innovation.

Why it matters:

• Regulatory bodies are now more likely to press for new rules or enforcement guidelines for crypto platforms, potentially affecting how exchanges operate.
• Announcements like this can influence investor confidence: stricter regulations may bring more legitimacy but also higher compliance costs.
• Given the rapid growth of crypto, these warnings suggest governments are unwilling to ignore crypto market mishaps and will accelerate rulemaking (Reuters).

Institutional adoption of crypto grows

Despite recent volatility, mainstream interest in digital assets continues to rise. According to industry reports, several major financial institutions are developing new cryptocurrency services and investment products (CoinDesk). Large asset managers have filed applications for bitcoin and ether funds, and banking giants are piloting crypto custody and payment solutions. For example, payments networks like Visa have expanded stablecoin settlement pilots for cross-border transfers (CoinDesk). Analysts interpret these moves as a sign that institutional money aims to flow into crypto markets, complementing retail demand.

Why it matters:

• Greater institutional involvement typically brings more liquidity and credibility to crypto, potentially reducing price swings in the long run.
• New crypto vehicles (like futures, non-spot-backed ETFs) could give conservative investors easier ways to access digital assets within regulated frameworks.
• However, rapid adoption also raises concerns that markets will become more sensitive to macro trends, so even more mainstream interest won’t eliminate the inherent volatility of crypto.

Pending crypto ETFs attract attention

Investors are closely watching developments in crypto exchange-traded funds. Several issuers have applied for U.S. spot bitcoin and ether ETFs, and media reports suggest regulators may review these applications this year (Cointelegraph). The approval of a major spot ETF could unlock significant new capital flows into crypto markets. Even speculation about an upcoming ETF decision has the market on alert, with analysts noting that an approved fund would allow pension funds and hedge funds easier access to bitcoin and other coins within a regulated structure (Cointelegraph).

Why it matters:

• An approved spot ETF would be a watershed for crypto, potentially bringing in billions from institutional and retail investors and driving further adoption.
• ETF approvals are seen as a signal that regulators consider crypto mature enough to integrate with mainstream finance—but delays or denials signal ongoing caution.
• If and when these ETFs launch, price spikes or new volatility are possible as demand from traditional investors floods in all at once.

Remember that cryptocurrency markets are highly volatile. This news roundup is for informational purposes only. Always do your own research (DYOR) before making any investment decisions.

Bottom Line

Cryptocurrency markets continue to evolve rapidly: software mishaps and sophisticated hacks highlight real risks, even as growing institutional interest and potential new ETFs suggest stronger adoption. These events serve as a reminder that crypto remains a high-risk, high-reward space. Investors should remain cautious, stay informed of regulatory changes, and treat all developments as signals of continued volatility in the digital asset landscape.