Up to $40 Billion Bitcoin Blunder by South Korean Exchange
By
Edmund Owusu
A Costly Mistake
South Korean cryptocurrency exchange Bithumb has admitted to accidentally transferring more than $40 billion worth of Bitcoin to hundreds of its customers, briefly turning them into multi-millionaires overnight. The error occurred on Friday when the platform intended to distribute a small promotional reward of 2,000 won ($1.37) per user but mistakenly credited 2,000 bitcoins instead.
Rapid Response
The glitch affected 695 customers, and within 35 minutes, Bithumb restricted trading and withdrawals to contain the fallout. The company reported that it successfully recovered 99.7% of the 620,000 bitcoins mistakenly sent, reassuring users that the incident was not linked to hacking or a security breach.
Official Reaction
South Korea’s financial regulator convened an emergency meeting on Saturday to assess the situation. Authorities stated they would investigate the incident further, with formal action possible if any illegal activity is uncovered.
Market Impact
The sudden influx of Bitcoin briefly triggered volatility on the exchange, with reports of a temporary sell-off as some users attempted to capitalize on the windfall. However, the swift recovery of funds prevented broader disruption in the cryptocurrency market.
Company Statement
In its apology, Bithumb emphasized that customer assets remain secure and that the error was purely operational. The exchange pledged to strengthen internal controls to prevent similar mishaps in the future.
IMAGE: BBC