- Bithumb rectified a payout error of 620,000 BTC.
- Correcting actions taken within 20 minutes.
- Commitment to user reimbursement and future prevention.
Bithumb, a South Korean crypto exchange, mistakenly distributed 620,000 BTC valued at over $40 billion to 695 users during a promotional event on February 6, 2026.
The payout error caused a 10% drop in BTC/KRW price, highlighting risks in crypto exchange operations and prompting Bithumb to implement enhanced security measures and compensation strategies.
Bithumb, a leading cryptocurrency exchange in South Korea, corrected a major payout error, distributing around 620,000 BTC due to a miscalculation during a promotional event intended to issue small cash prizes.
Key actions involved Bithumb’s CEO Lee Jae-won‘s apology and subsequent corrective measures, including prompt blocking of anomalous transactions, resulted in recovering 99.7% of the overpaid Bitcoin distribution. In a statement, Lee Jae-won expressed, “We sincerely apologize for the confusion and inconvenience caused to our customers due to the overpayment incident. We feel a deep sense of responsibility for failing to uphold the top priorities of a virtual asset exchange: stability and integrity.” [1]
The incident’s immediate effect stirred temporary price fluctuations in the Bitcoin market, with the BTC/KRW value dropping by approximately 10% due to the error. The exchange moved swiftly to assess and rectify the potential financial damage.
Bithumb’s commitment to mitigate losses included establishing a customer protection fund, providing compensation to impacted users, and covering losses using its corporate assets, avoiding the need for external funding sources. More insights on this are available on Crypto Briefing.
An investigation led by South Korea’s Financial Supervisory Service examines the procedural breach. Further regulatory scrutiny accompanies Bithumb’s moves to enhance its internal systems to prevent similar operational errors in the future.
Technological outcomes revolve around improvements in asset verification and transaction vetting. Bithumb’s upgrades utilize AI detection and external audits, reinforcing its transaction security protocols and operational integrity. For comprehensive rankings and data insights, refer to CryptoRank.
