The incident happened during a promotional event where Bithumb planned to give users 2,000 Korean won, worth about $1.40, as a reward. But due to a system error, the exchange mistakenly sent 2000 bitcoins instead of Korean won. At current prices, this accidental distribution was worth around $140 million per winner.
About 695 users suddenly received large amounts of Bitcoin in their accounts. Many were surprised to see unexpected crypto funds appear instantly. Some users quickly sold their Bitcoin, hoping to secure profits before the exchange could react.
Bithumb noticed the error and took emergency action within 35 minutes. The company immediately suspended trading and withdrawals from affected accounts to prevent further losses. By the next day, Bithumb confirmed it had recovered 99.7% of the wrongly sent 620,000 bitcoins.
The company strongly denied any hacking involvement. “We would like to make it clear that this incident is unrelated to external hacking or security breaches,” Bithumb stated. The exchange assured customers that their funds were safe and protected.
However, the mistake caused a temporary shock in the market. On Bithumb’s platform, Bitcoin prices dropped by 17% as users rushed to sell their unexpected crypto holdings. This sudden selling created a flash crash and increased panic among traders.
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South Korean regulators quickly noticed the incident and raised serious concerns. The Financial Services Commission warned that the error “exposed the vulnerabilities and risks of virtual assets.” Authorities are now considering inspections of Bithumb and possibly other crypto exchanges to prevent similar mistakes in the future.
This event has become one of the most expensive typos in crypto history. It showed how a simple technical error can create massive financial risks and shake market confidence.
This incident shows crypto systems are not fully safe yet. Even a small mistake can move billions instantly. Trust in exchanges may weaken after such errors. Regulators may now impose stricter rules. Crypto investors may become more cautious in the future.
