Bithumb Chases 7 Bitcoin Lost in $42B Error, US Crypto Bill Splits Regulators, Whale Buys $2.6M HYPE

Latest Market Updates: As of 9th April 2026.

Bithumb Moves to Recover Missing Bitcoin After Costly Error

The day’s most significant legal development comes from South Korea, where crypto exchange Bithumb is pursuing action to recover funds lost in a major system error.

Specifically, the incident dates back to February 6, when the exchange planned a small reward distribution. On that day, 620,000 won (approximately $420) was to be given to 249 promotional winners. However, a technical mistake instead triggered the transfer of 620,000 Bitcoin, worth around $42 billion at the time.

Although Bithumb managed to reverse most transactions within minutes, a portion of the funds had already been moved beyond immediate recovery. Nevertheless, the exchange later confirmed that it retrieved 99.7% of the assets the same day. Meanwhile, the remaining 1,788 BTC had already been offloaded and was subsequently replenished from company funds.

Now, with 7 BTC still unaccounted for, Bithumb has escalated the situation. In fact, according to Chosun Biz, the company has filed for a provisional asset freeze targeting users who have yet to return the funds, signaling a firm and ongoing legal effort.

U.S. Crypto Bill Sparks Divide Over Developer Rules

While Bithumb navigates legal recovery, a separate debate is intensifying in the United States over crypto regulation.

In particular, a proposed bill backed by Tim Scott has sparked division between law enforcement and the crypto industry. At the center of this debate is how non-custodial software developers should be classified.

According to Politico, the bill suggests that developers who do not control user funds should not be treated as money transmitters. In line with this, they would also be exempt from anti-money laundering (AML) requirements.

However, law enforcement groups argue that such provisions could create dangerous blind spots, weakening their ability to track financial crimes.

On the other hand, industry advocates, along with Senator Cynthia Lummis, defend the proposal. They contend that writing code is a constitutional activity and should not automatically fall under financial regulation.

Bitcoin Network Activity Falls to Multi-Year Lows

Amid these legal and regulatory developments, on-chain data suggests the crypto market is entering a quieter phase.

For instance, according to CryptoQuant, active addresses on the Bitcoin network have declined sharply since the start of this year, reaching levels not seen in nearly eight years.

This drop points to reduced volatility and waning speculative interest, with short-term traders stepping back. At the same time, long-term holders appear to be gaining influence.

The firm’s analysts interpret this shift as a potential accumulation phase. In this phase, large investors quietly build positions, careful not to trigger major price movements.

Historically, such low-activity periods have often preceded upward trends, hinting that the market may be laying the groundwork for future momentum.

Whale Makes $2.6M Bet on HYPE Tokens

Despite the broader slowdown, targeted investments are still emerging.

For context, data from Onchain Lens shows that a crypto whale recently purchased 67,648 HYPE tokens. The investment totaled approximately $2.6 million, at an average price of $38.49 per token.

Notably, this move follows recent comments from Arthur Hayes, who stated that HYPE is currently the only asset he is actively accumulating, thereby adding further intrigue to the trade.

Binance Founder Emphasizes Building During Bear Markets

Finally, zooming out, industry leaders are increasingly focusing on long-term strategy rather than short-term price action.

In this context, Changpeng Zhao, founder of Binance, recently shared his perspective on market cycles during an appearance on The Wolf of All Streets podcast.

According to Zhao, bear markets often provide the best conditions for innovation. With reduced competition and more realistic valuations, builders can focus on creating sustainable projects.

Drawing on insights from YZi Labs, he highlighted that many successful ventures were launched during previous downturns, and that investments made in such periods often deliver stronger long-term returns.

In conclusion, his message is clear: those who continue building now are likely to be best positioned when the next bull cycle arrives.