South Korea’s second-largest cryptocurrency exchange, Bithumb, accidentally distributed Bitcoin worth nearly 260 billion won (around $195 million). The transaction was done during a promotional event on February 6 due to a technical error.
The incident took place around 7:30 pm as part of Bithumb’s ‘Random Box’ giveaway. It was designed to reward users with either small amounts of loyalty points or Bitcoin valued at about 2,000 won.
Due to a system configuration mistake, the rewards were credited as full Bitcoin units instead of points. As a result, 249 users each received 2,000 Bitcoin, an amount worth approximately 260 billion won per person at current market prices. The unexpected incident quickly confused users, with some attempting to trade or move the assets before the exchange detected the issue.
Following the error, many recipients reportedly began selling the mistakenly credited Bitcoin. This selling pressure caused Bitcoin prices on Bithumb to plunge sharply, briefly dropping to 81.11 million won. This was over 16% below the global market price. Prices later rebounded to around 98 million won as trading activity stabilized and emergency measures were introduced.
Bithumb suspended all cryptocurrency deposits and withdrawals at around 7:40 pm, just minutes after identifying the error. The exchange then initiated efforts to recover the wrongly issued Bitcoin.
Industry sources said roughly 416,000 Bitcoin linked to 164 users have already been recovered, largely because the assets had not been used. However, Bitcoin worth nearly 3 billion won was transferred off the platform before restrictions were imposed.
The incident unfolded amid broader turbulence in the crypto market. According to CoinMarketCap, Bitcoin briefly fell to around $61,000 on February 6, its lowest level since October 2024.
The decline followed remarks by US Treasury Secretary Scott Bessent. He stated that the government lacks the authority to intervene or support Bitcoin prices, triggering rapid liquidation of leveraged positions across markets.
Bithumb has said that it is working to fully reclaim the remaining assets. The South Korean crypto exchange also stated that it is reviewing its internal systems and promotional processes to prevent similar errors in the future.
The incident, however, highlights the operational risks that still exist within large crypto exchanges. A single configuration error was enough to trigger sharp price swings, freeze platform activity, and add to already high market volatility. It reinforces the importance of stronger safeguards, testing, and controls as digital asset platforms continue to scale globally.
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