SEOUL: South Korean crypto exchange Bithumb accidentally gave away over $40 billion worth of Bitcoin to users, causing a temporary market shock. The error occurred during a promotional rewards campaign on Friday, when 695 customers received far more than the intended amount.
Bithumb had planned to distribute small cash rewards of 2,000 Korean won (around $1.37) to select users. Instead, winners received at least 2,000 bitcoins each. The exchange acted quickly, restricting trading and withdrawals within 35 minutes of the error.
“We clarify this incident was not due to hacking or security breaches,” Bithumb said. “There are no issues with system security or customer asset management.”
Following the accidental distribution, Bitcoin prices briefly dropped 17% on Bithumb, falling to 81.1 million won. Prices later recovered, trading at around 104.5 million won. Market analysts noted the event caused short-term volatility but no lasting market damage.
Bithumb confirmed that 99.7% of the 620,000 bitcoins, worth about $44 billion at current rates, have been recovered. The incident highlights the risks exchanges face when managing crypto promotions and large digital asset transfers.
The South Korean crypto market remains competitive, with Bithumb trailing the dominant exchange Upbit. Despite this mishap, Bithumb maintains a strong user base and continues to operate normally.
Experts said the event serves as a reminder of the high stakes in crypto management. “Even minor system errors can result in massive value movements,” said a local crypto analyst. “Exchanges must implement rigorous safeguards.”
Bithumb also confirmed ongoing monitoring to ensure similar incidents do not happen in the future. The exchange urged users to stay calm and not panic over temporary price fluctuations in the crypto market.
In other news read more about Bitcoin Strengthens in Pakistan, Shows Positive Trend Against PKR
The accidental giveaway underscores the growing significance of crypto in South Korea, where digital assets continue to attract large retail and institutional participation.
