[Bithumb] Celebrating 11th Anniversary - Strengthening the Investor Protection Program for the 15th Time

Hello.

NO.1 Virtual Asset Platform, Bithumb.

First, free registration for transaction fees

Second, support for moving transaction offices

Third, commemorating the highest price of Bitcoin! A drop of Bitcoin equivalent to 70,000 KRW for all citizens.

Fourth, Bithumb presents gifts worth a total of 30 billion KRW to all members.

Fifteenth, strengthening the investor protection program for virtual asset investors

In celebration of the 11th anniversary of its founding, Bithumb is moving forward with the preparation of the Virtual Asset User Protection Act.

Since 2023, with the investor protection program in operation, we have been able to prevent customer damage through rapid damage compensation and emergency incident response.

Furthermore, Bithumb is committed to taking a step further in preparing the Virtual Asset User Protection Act.

Bithumb has operated a 24-hour customer center solely for the urgent handling of customer complaints.

Recently, as the volatility of the virtual asset market has increased and transaction volume has risen, customer interest and needs have grown even more.

To meet these customer demands, we have expanded the only 24-hour customer center in the country for general consultations.

• Start Date: November 11, 2024 (Monday)

• Consultation Channel: Customer Center (KakaoTalk and 1661-5566)

Bithumb has established the 'Market Monitoring Room', a dedicated organization for the preparation of the Virtual Asset User Protection Act, and

is operating a highly advanced abnormal transaction monitoring system with the full support of the Financial Supervisory Service and financial institutions' expertise.

Through the abnormal transaction monitoring system, all transactions within Bithumb are analyzed, and in case of confirmed unfair transactions, they are immediately reported to the financial authorities.

Additionally, an external whistleblower channel has been established to strengthen the investor protection program.

We will provide rewards of up to 10 billion KRW for reporting activities related to market manipulation, virtual asset industry and domestic transaction office employees' misconduct, and unfair trading activities.

The Financial Services Commission, the Financial Supervisory Service, and the prosecution are actively cooperating to ensure the best in unfair transaction monitoring for user protection.

※ Whistleblower Channel: whistle@bithumbcorp.com

Furthermore, a 'Market Monitoring Committee' composed of internal/external experts such as representatives, compliance officers, and external advisory members has been established,

and after monitoring major abnormal transactions that intentionally inflate transaction volume and raise prices through repeated transactions,

Bithumb plans to introduce the industry's highest level of 'automatic transaction prevention system' to preemptively prevent this.

Bithumb does not operate customer deposits arbitrarily.

1. The cash deposited by customers is managed safely and can be fully withdrawn from the contracted bank.

2. The virtual assets deposited by customers are securely stored in cold wallets at a ratio of 90%% or more, which is higher than the 80%% required by the Virtual Asset User Protection Act.

To strengthen the transparency of deposit protection and management, we conduct regular audits through external audit firms and disclose periodic audit reports for all customers to verify.

(Audit Report)

Also, for the protection of customer assets and damage compensation, we have separately set aside approximately 100 billion KRW, which is three times the standard required by law.

※ According to Article 8 of the Virtual Asset User Protection Act and Article 10, Clause 2 of the Supervisory Regulations, transaction offices must separately set aside insurance or reserve funds of at least 5%% of the value of virtual assets not stored in cold wallets.

Bithumb completed the construction of the second-generation Anti-Money Laundering (AML) system in July 2024,

and has started full-scale operations to provide safer services by preventing illegal activities such as money laundering.

The second-generation AML system, developed by Bithumb itself,

supports various AML operations such as customer verification (KYC), suspicious transaction reporting (STR), and more, beyond the limitations of existing external solution systems.

Through this, we are thoroughly preparing for legal compliance related to the reporting and use of specific financial transaction information and are committed to anti-money laundering.

Moreover, through the AML system, we are preemptively preventing customer damage with an internal control process that is stronger than the financial authorities' standards, such as monitoring abnormal transactions and blocking deposits.

Going forward, Bithumb will continue to develop and enhance investor protection and user protection systems to prevent damage.

Thank you.

*This information is automatically generated.