South Korean crypto exchange Bithumb said it has recovered nearly all of the Bitcoin mistakenly distributed during a promotional error that briefly disrupted prices on its platform earlier this month.
Summary
- Bithumb says it has recovered about 99.7% of Bitcoin mistakenly distributed during a reward event error.
- The exchange used its own funds to reconcile remaining amounts after some BTC was sold.
- Bitcoin prices briefly dropped on Bithumb but the impact did not spread to broader markets.
Bithumb says 99.7% of mistaken BTC has been recovered
In a notice published on its website, Bithumb said the incident stemmed from an internal mistake during a reward event on Feb. 6, when users were meant to receive small incentives denominated in Korean won. Due to a system configuration error, Bitcoin (BTC) was credited instead, prompting some recipients to immediately sell the assets.
The exchange said it has since recovered about 99.7% of the wrongly transferred Bitcoin, adding that the remaining amount was reconciled using Bithumb’s own funds after some users sold the assets during the brief window before the issue was identified.
As of late Feb. 7, the company said all affected balances had been fully restored, and customer assets were safely secured.
Bithumb moved quickly to block impacted accounts and initiate recovery procedures once the error was detected, stressing that the incident was the result of an operational failure rather than a security breach or hacking attempt.
The mistaken distribution briefly caused Bitcoin prices on Bithumb’s BTC/KRW market to plunge, diverging sharply from prices on other global exchanges. The episode highlighted how localized liquidity shocks on major platforms can affect price discovery, even when broader market conditions remain unchanged.
To address user impact, Bithumb said it would compensate traders who sold Bitcoin at unusually low prices during the incident and offer additional measures aimed at restoring confidence, including fee relief.
The exchange also said it has formed a dedicated internal task force to strengthen operational controls and prevent similar errors in the future.
Bithumb emphasized that the recovery of the assets demonstrates the effectiveness of its response systems and reiterated its commitment to safeguarding customer funds following the incident.