- Bithumb recovers Bitcoin overpayment and covers remaining shortfall, averting crisis.
- Leadership takes responsibility with immediate corrective action.
- No assets lost, normal operations resumed promptly.
Bithumb, South Korea's prominent cryptocurrency exchange, mistakenly overpaid 620,000 BTC to users during a promotional event on February 6, 2026, successfully recovering 99.7% shortly thereafter.
The swift resolution prevents market disruption, emphasizing Bithumb's internal control efficacy and commitment to user trust through asset coverage and compensation measures.
Bithumb experienced an overpayment incident of 620,000 BTC due to a promotional event. The platform managed to recover 99.7% of the overpaid amount swiftly, deploying effective internal controls and blocking unauthorized transfers within minutes. According to a Bithumb spokesperson, "Our internal systems successfully blocked transactions within 35 minutes, which allowed us to recover 99.7% of the overpaid BTC swiftly."
In response, Bithumb's CEO Lee Jae-won committed to covering the shortfall of 1,788 BTC using company assets. The exchange emphasized its commitment to security and customer protection through transparent practices and asset matching. The Financial Supervisory Service is examining the incident.
The event triggered a brief flash crash but control mechanisms prevented widespread market disruption. Prices stabilized within 5 minutes, ensuring market confidence and preventing cascading effects on the broader crypto market. Updates and news related to such events can often be found on platforms like PA News on X.
Bithumb's proactive measures have implications for regulatory scrutiny and underline the importance of robust internal controls. The incident underscores the industry's focus on KuCoin cryptocurrency exchange updates and news to fortify systems.
Bithumb announced a compensation plan including a permanent protection fund for customers, highlighting its commitment to the community. Lee Jae-won emphasized this by stating, "To mitigate the impact on our customers, we are establishing a KRW 100 billion permanent customer protection fund and providing 110% compensation for those who experienced panic selling." This proactive approach may lead to increased examination by other exchanges to fortify their systems against similar challenges.
Financial and technological measures taken by Bithumb signal a continued emphasis on protecting customer assets. The compromise resolution showcases a preparedness that could influence future industry standards, leading to comprehensive internal reviews by other platforms. The swift action taken by Bithumb is an example of their operational resilience, a sentiment echoed by a Crypto Market Expert.