Korbit, one of South Korea's major cryptocurrency exchanges, is selling 15 bitcoin and 60 ether from its corporate treasury to cover operational costs. The move comes as trading activity across the country's five largest digital asset platforms plunges to levels not seen in two years.
Why the sale matters
Public wallet data shows Korbit transferred the coins — roughly $1.4 million worth at current prices — to an address associated with a South Korean exchange, then to a foreign platform. The exchange hasn't publicly explained the sale, but the timing aligns with a broader market slump. Domestic trading volumes have fallen sharply since the start of 2025, according to industry data.
Korbit isn't alone in feeling the squeeze. The five biggest exchanges in South Korea — Upbit, Bithumb, Coinone, Korbit, and Gopax — combined for their lowest monthly trading volume in two years during February. That's a stark contrast to the boom years of 2021 and 2024, when retail frenzy drove daily volumes into the hundreds of billions of won.
A shrinking pie for Korean exchanges
South Korea's crypto market has historically been dominated by retail traders, many of whom chase high-volatility altcoins. But the current downturn has sapped interest. Bitcoin has traded sideways for months, and regulatory uncertainty continues to hang over the industry. The country's Financial Services Commission has been slow to approve new exchange licenses, and some smaller platforms have already shut down.
Korbit, which launched in 2014, was once a top-three exchange by volume. Today it ranks fourth, well behind market leader Upbit. The company's decision to sell reserves suggests its cash flow is under pressure. Unlike some rivals, Korbit hasn't raised venture capital in recent years, leaving it more dependent on trading fees.
Korbit still holds a significant amount of crypto on its balance sheet, but the sale signals that the exchange is prioritizing liquidity. It's unclear whether the company plans further sales or if it will seek external funding. The broader market isn't showing signs of a quick recovery. Trading volumes across South Korean exchanges remain low, and there's no catalyst on the horizon to reignite retail interest.
Regulators are expected to release new guidelines for virtual asset service providers later this year, which could clarify the rules for exchanges. Until then, Korbit and its peers will have to weather the slump with thinner margins. The question now is whether the sale of bitcoin and ether is a one-time fix or the start of a deeper retrenchment.
