South Korean cryptocurrency exchange Bithumb said it accidentally distributed more than $40 billion worth of bitcoin to customers as part of a botched promotional event, triggering a sharp but brief selloff on its platform. The error occurred on Friday when users were meant to receive small cash rewards, but instead were credited with thousands of bitcoins each.
Bithumb said it recovered 99.7% of the 620,000 bitcoins involved, valued at roughly $44 billion at current prices, after restricting trading and withdrawals for the 695 affected accounts within 35 minutes. The company apologized for the incident and stressed that it was not the result of hacking or a security breach, adding that its systems and customer asset management remained intact.
The incident drew swift attention from regulators. South Korea’s Financial Services Commission said the mistake highlighted the risks associated with virtual assets and announced it would consider on-site inspections of Bithumb and other exchanges if internal control reviews uncover irregularities.
Bitcoin prices on Bithumb briefly fell about 17% following the error before recovering later in the session. The episode underscores ongoing regulatory concern over operational risks in the crypto sector, where Bithumb remains a major player but still trails market leader Upbit.
