Crypto exchange scrambles after $40bn Bitcoin payout error
A staff error during a promotion credited users with billions in Bitcoin instead of small cash rewards, forcing urgent recovery efforts.
South Korea’s second-largest cryptocurrency exchange, Bithumb, is attempting to recover more than $40bn in Bitcoin after a promotional payout error credited customers with Bitcoin rather than Korean won.
The mistake occurred on 6 February during a ‘random box’ event, when prize values were entered in Bitcoin rather than in Bitcoin. Intended rewards totalled 620,000 won for 695 users, yet 620,000 bitcoins were distributed.
Only 249 customers opened their boxes, but the credited sums exceeded the exchange’s holdings.
Most balances were reversed through internal ledger corrections. About 13bn won ($9m) remains unrecovered after some users sold or withdrew funds before accounts were frozen. Authorities said 86 customers liquidated roughly 1,788 Bitcoins within 35 minutes.
Regulators have opened a full investigation, and lawmakers have scheduled an emergency hearing. Legal uncertainty remains over liability, while the exchange confirmed no hacking was involved and pledged stronger internal controls.
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