Crypto Firm Mistakenly Distributes $44 Billion to Customers
In a remarkable blunder, South Korean cryptocurrency exchange Bithumb mistakenly distributed approximately $44 billion in bitcoin during a promotional event. This mishap led to hundreds of customers receiving substantial amounts of cryptocurrency, as the intended rewards dramatically exceeded expectations.
Details of the Incident
On Friday, a promotional campaign intended to reward participants with just 2,000 South Korean won (around $1.40) ended in chaos. Instead, many winners received an astonishing 2,000 bitcoin units each. The error was identified quickly, prompting Bithumb to act swiftly.
Containment Measures
Recognizing the severity of the mistake, Bithumb suspended trading and withdrawals for the impacted accounts within just 35 minutes. The exchange reported recovering over 99 percent of the mistakenly distributed funds. Approximately 695 users were involved in the error.
Company’s Response
- Bithumb issued an apology for the oversight.
- The company clarified that there was no security breach related to the incident.
- They affirmed, “There are no problems with system security or customer asset management.”
Regulatory Reaction
However, regulators expressed concern over the incident. The Financial Services Commission of South Korea announced plans to investigate the mishap. They aim to assess potential vulnerabilities and risks across other cryptocurrency exchanges tied to digital assets.
This incident highlights the complexities and risks associated with cryptocurrency management and promotional activities. As the situation unfolds, it may prompt broader scrutiny within the industry.
