- Bithumb accidentally distributed 620,000 BTC in error
- Most users returned funds, but some refused
- Exchange seeks to freeze remaining 7 BTC via court
- Incident sparks regulatory scrutiny and delays IPO
Costly “Fat Finger” Mistake
South Korean exchange Bithumb is taking legal action after mistakenly distributing around 620,000 BTC during a promotional event. The error was caused by a staff member entering BTC instead of Korean won as the reward unit.
Although most recipients returned the funds, a portion remains unreturned, prompting the exchange to request court-ordered asset freezes.
Market Impact and User Losses
The incident caused significant disruption, including a sharp drop in the BTC-KRW trading pair and financial losses for users. Bithumb has pledged compensation and announced plans to improve internal controls.
Regulatory Pressure Increases
Authorities have criticized the exchange’s risk management systems, especially given the mismatch between distributed bitcoin and actual holdings.
The situation has triggered discussions around stricter regulations for crypto exchanges in South Korea and has delayed Bithumb’s IPO plans to 2028.
