Bithumb, one of South Korea's major crypto exchanges, mistakenly sent 620,000 bitcoins to 249 promotional event users but has recovered almost all of them. The error briefly dragged down bitcoin prices, prompting a regulatory inspection. The exchange pledged compensation for affected customers.
Bithumb, a leading South Korean cryptocurrency exchange, accidentally distributed 620,000 bitcoins to 249 users participating in a promotional event around 7 p.m. on Friday. The error occurred when an employee input the payment unit as "BTC" instead of Korean won, equating to an average of 2,490 bitcoins—worth 244 billion won ($166 million)—per user.
The exchange quickly halted transactions and withdrawals from the affected accounts at 7:40 p.m. It recovered 618,212 bitcoins immediately and reclaimed 93 percent of the 1,788 bitcoins sold by users. Nonetheless, 125 bitcoins remain unrecovered.
The incident led to a temporary drop in bitcoin prices on the platform as recipients sold the unexpected windfall. Bithumb estimated customer losses at around 1 billion won and announced plans to compensate those who sold under unfavorable conditions by covering the full price difference plus a 10 percent bonus.
CEO Lee Jae-won apologized and vowed to "take full responsibility." The Financial Supervisory Service dispatched staff to examine Bithumb's user protection measures and the prospects for full recovery.
