South Korean cryptocurrency exchange Bithumb has successfully recovered 99.7% of the Bitcoin mistakenly distributed to users during a promotional event on February 6, 2026. The incident, which involved an overpayment of 620,000 Bitcoin worth over $40 billion to 695 users, stemmed from an input error where an employee incorrectly entered the payment unit as "Bitcoin (BTC)" instead of "Korean Won (KRW)" during a "random box" event reward distribution.
Bithumb detected the error within 20 minutes of its occurrence and swiftly froze transactions and withdrawals on the affected accounts. According to a statement released by Bithumb on February 8, 2026, the exchange managed to reclaim 618,212 BTC, representing 99.7% of the total overpaid amount. For the remaining 0.3%, approximately 1,788 Bitcoins that had already been sold, Bithumb used its own assets to fully replenish the amount, restoring the exchange's Bitcoin asset consistency to 100% by February 7, 2026, at 22:42:52. Furthermore, 93% of the assets that recipients had already sold were also reclaimed, with the company confirming that no coins were sent outside the platform.
The incident triggered a temporary market disruption, with Bitcoin prices on Bithumb falling more than 10% below broader market levels as some recipients sold the mistakenly credited coins. Bithumb has committed to compensating users who sold Bitcoin at unfavorable prices during the event, offering 110% compensation for the difference between the actual selling price and what it should have been. All customers who accessed the platform during the incident will receive 20,000 KRW ($15), and trading fees will be waived for seven days, starting February 9, 2026.
Bithumb CEO Lee Jae-won issued a public apology, acknowledging the confusion and inconvenience caused by the overpayment incident. He stated that the company takes "a deep sense of responsibility for failing to uphold the top priorities of a virtual asset exchange: stability and integrity".
In response to the incident, Bithumb has announced the establishment of a permanent Customer Protection Fund worth 100 billion Korean won ($68 million) to address future incidents. The exchange is also working with regulators, including the Financial Supervisory Service and the Financial Services Commission, who launched an emergency probe and on-site inspection following the incident. Bithumb has reported the matter to authorities and is implementing system upgrades, such as enhanced asset verification and multi-step payment approvals, to prevent similar errors in the future.
The incident is a reminder of the risks associated with cryptocurrency exchanges and the importance of robust internal controls and risk management systems. While Bithumb has taken swift action to rectify the error and compensate affected users, the event is likely to lead to increased regulatory scrutiny of the cryptocurrency industry in South Korea.