Korean Crypto Exchange Mistakenly Distributes $60B in Bitcoin
A significant incident occurred recently at a South Korean cryptocurrency exchange, Bithumb, where a massive error led to the accidental distribution of over $60 billion in Bitcoin. The exchange mistakenly sent 620,000 bitcoins to users, which prompted temporary panic and market fluctuations.
Korean Crypto Exchange Mistakenly Distributes $60B in Bitcoin
Details of the Mistake
On Friday, Bithumb intended to conduct a promotional event where users were supposed to receive about 2,000 won (approximately $1.95) each. However, the exchange mistakenly transferred around 2,000 bitcoins per user instead.
Within 35 minutes of the error, Bithumb halted trading and withdrawals for the 695 affected users. This action aimed to manage the fallout from the situation promptly.
Impact on Bitcoin Prices
The accidental distribution led to noticeable volatility in Bitcoin prices on the platform. Reports indicated that Bitcoin values fell by 17% to 81.1 million won late Friday due to a temporary sell-off by some recipients.
Recovery and Compensation Efforts
- Bithumb successfully recovered 99.7% of the mistakenly sent bitcoins.
- The exchange will use its own assets to cover any losses incurred during this incident.
- Affected users will receive compensation for the price difference, along with a 10% bonus.
The estimated financial loss from this mishap is around 1 billion won, roughly $976,579. Bithumb clarified that the error was not due to any hacking or security issues.
Conclusion
This situation sheds light on the potential volatility in cryptocurrency markets and the importance of operational accuracy within exchanges. Bithumb’s rapid response showcases the measures necessary to maintain user confidence following such incidents.
