South Korean Crypto Exchange Bithumb Accidentally Sends $44 Billion in Bitcoin to Users
On Friday, February 6, 2026, South Korean cryptocurrency exchange Bithumb accidentally distributed more than $40 billion worth of bitcoins to its customers during a promotional event, triggering a sharp selloff and raising serious concerns within the country’s cryptocurrency sector.
The Incident
Bithumb had planned to reward its users with small cash bonuses as part of a promotion, with each participant set to receive rewards of approximately 2,000 Korean won (around $1.40). However, due to a critical error, some customers instead received at least 2,000 bitcoins each—an astronomical miscalculation considering the value of bitcoin at the time.
The mistaken release amounted to roughly 620,000 bitcoins, valued at about $44 billion based on current market prices. The transaction caused widespread alarm as it dramatically inflated customer balances, and many recipients attempted to sell the unexpected windfall, causing bitcoin prices on Bithumb to plunge by 17% before recovering.
Response and Recovery
Bithumb quickly intervened after discovering the error. Within 35 minutes, the exchange restricted trading and withdrawals for the 695 affected accounts to prevent further disruption. The company subsequently announced the successful recovery of 99.7% of the mistakenly distributed bitcoins.
In a public statement, Bithumb expressed regret over the incident and emphasized that the error was unrelated to any external hacking or security breach. They assured customers that their system security and asset management protocols remain intact despite the mishap.
Regulatory Reaction
South Korea’s Financial Services Commission and other financial regulators responded to the incident by highlighting the risks and vulnerabilities inherent in virtual asset management. Following an emergency meeting, regulators indicated plans to conduct on-site inspections not only of Bithumb but also other cryptocurrency exchanges to scrutinize internal control systems, holdings, and operational practices related to virtual assets.
The incident has intensified regulatory scrutiny over the country’s cryptocurrency market, underscoring the need for robust oversight and risk management.
Market Impact
Bitcoin prices on Bithumb briefly fell to 81.1 million won during the event before recovering to over 104 million won by Saturday. The price volatility reflected the immediate market shock caused by the error and subsequent corrective actions by the exchange.
Bithumb, one of South Korea’s major cryptocurrency exchanges, trails its competitor Upbit in market dominance but remains a prominent player in the region’s crypto ecosystem.
Looking Ahead
This unprecedented distribution error has raised important questions around operational risks within crypto exchanges. Market participants and regulators alike are likely to watch closely as South Korea implements stricter review measures to prevent future occurrences.
Bithumb’s quick recovery efforts helped to stabilize the situation, but the episode serves as a cautionary tale about the potential for technical glitches to have massive financial consequences in the rapidly evolving digital asset industry.