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Bithumb Released US$ 44 Billion in Cryptocurrency by Mistake; Error Impacted Bitcoin Prices and Caught Regulators’ Attention.
An operational error involving Bitcoin led the South Korean exchange Bithumb to accidentally distribute approximately US$ 44 billion in cryptocurrencies to hundreds of users on Friday (6) in South Korea.
The failure occurred during a promotional event of the platform and was caused by a system malfunction that credited amounts far exceeding the expected values.
As an immediate consequence, customers began a wave of selling, generating strong volatility in the local crypto market.
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The company publicly apologized and stated that it had recovered almost all of the assets.
System Failure Distributed Thousands of Bitcoins per User
Bithumb’s promotional event envisaged modest cash rewards for participating customers. Each user was supposed to receive from 2,000 South Korean won — about US$ 1.40.
However, due to the system malfunction, the beneficiaries received at least 2,000 bitcoins each.
The error exponentially multiplied the distributed values, reaching approximately 620,000 bitcoins credited inappropriately.
Considering the current exchange rate, the amount reached around US$ 44 billion, turning the episode into one of the largest operational errors ever recorded in the cryptocurrency sector.
Mass Selling Pressured the Crypto Market
As soon as they noticed the high balances in their wallets, users began immediate liquidations.
The movement generated strong selling pressure within the platform itself.
As a result, the price of Bitcoin on Bithumb experienced a sharp drop of 17% on Friday night.
The price reached 81.1 million won before partially recovering and closing at 104.5 million won.
This behavior illustrates how operational failures can quickly affect the crypto market, especially in environments with high liquidity and automated order execution.
Emergency Block Limited Damages
In light of the incident, the exchange acted in containment mode.
Trading and withdrawals of the affected customers were quickly restricted.
According to the company, 695 users were directly impacted.
The operational limitations were implemented within 35 minutes after the erroneous distribution.
The rapid response was crucial to avoid even greater losses and facilitate the process of reversing the incorrect credits in Bitcoin.
Bithumb Claims to Have Recovered Almost All Assets
In an official statement, the platform publicly apologized for the incident and detailed the measures taken.
The company reported that it had recovered 99.7% of the distributed assets, significantly reducing the financial impact of the error.
In the note, it emphasized that the episode did not originate externally:
“We would like to make it clear that this incident is not related to external cyberattacks or security breaches, and there are no issues with the security of the system or the management of customer assets”, stated Bithumb in the statement.
Thus, the exchange sought to preserve investors’ trust and the cryptocurrency ecosystem.
Regulators Point Out Vulnerabilities in the Sector
Despite the technical justification, South Korean financial authorities reacted with concern.
The case mobilized regulatory bodies, including the Financial Services Commission.
According to regulators, the episode:
“exposed the vulnerabilities and risks of virtual assets”.
The analyses should evaluate internal controls, operational governance, and digital asset management — critical points for the stability of the crypto market.
Bithumb’s Position in the Cryptocurrency Market
Bithumb ranks among the largest exchanges in South Korea, although it holds the second position in the country.
The leadership belongs to Upbit, currently dominant in the trading volume of Bitcoin and other cryptocurrencies in the South Korean market.
The incident, therefore, occurs in a highly competitive environment where operational credibility is a strategic factor.
Impacts and Lessons for the Crypto Market
The episode reinforces discussions on technological governance in exchanges.
Even without a hacker attack, a simple system failure was enough to move billions.
Additionally, the case highlights the need for additional layers of validation before rewarding or massive transfers occur.
For investors, the alert remains: sharp fluctuations in the crypto market can arise not only from macroeconomic factors but also from internal operational errors.
See more at: Crypto Company Accidentally Sends US$ 44 Billion in Bitcoins to Users | CNN Brasil
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