South Korean Crypto Firm Accidentally Distributes £32bn in Bitcoins to Users
In a significant mishap, South Korean cryptocurrency exchange Bithumb mistakenly distributed £32 billion (over $40 billion) worth of Bitcoin to its users. This incident, which occurred on Friday, has raised considerable concern within the crypto community.
Details of the Distribution Error
Bithumb had intended to provide small cash rewards, approximately 2,000 Korean won (around $1.37), to users as part of a promotional event. However, due to an error, approximately 620,000 bitcoins were allocated to over 695 customers, with each recipient receiving at least 2,000 bitcoins.
Response and Recovery
Following the alarming mistake, Bithumb acted swiftly. The exchange restricted trading and withdrawals for the affected customers within 35 minutes of the erroneous distribution. Remarkably, Bithumb managed to recover 99.7% of the mistakenly distributed bitcoins, which collectively held a value of about $44 billion at market rates.
Market Impact
The error had a notable impact on Bitcoin’s price. Following the distribution announcement, Bitcoin prices plunged by 17%, falling to around 81.1 million won. However, the cryptocurrency later rebounded, trading at approximately 104.5 million won shortly after.
Company Statement
Bithumb clarified that the incident was not linked to any external hacking attempts or security breaches. The company reassured users that there were no issues with system security or asset management.
- Event Date: Friday prior to February 7, 2026
- Total Bitcoin Distributed: 620,000 bitcoins
- Value of Distributed Bitcoin: Over £32 billion
- Crypto Price Drop: 17% decline
- Customer Compensation: Approximately 695 users impacted
This incident serves as a stark reminder of the complexities and risks involved in cryptocurrency management. Bithumb’s swift action to mitigate the situation highlights the challenges faced in the rapidly evolving digital currency landscape.
