A South Korean crypto exchange accidentally sent about $44 billion worth of Bitcoin to customers during a promotional rewards campaign, triggering sharp price swings and drawing swift regulatory scrutiny. Bithumb said the error occurred last week and affected hundreds of users.
The exchange said the mistake happened while processing a planned giveaway meant to distribute small cash rewards. Instead of crediting about 2,000 Korean won ($1.40), some users received at least 2,000 Bitcoin each. The error resulted in the unintended distribution of roughly 620,000 Bitcoin, valued at about $44 billion at current prices.
Bithumb said it detected the problem quickly and moved to contain the fallout. The exchange restricted trading and withdrawals for 695 affected users within 35 minutes. It later said it had recovered 99.7% of the excess Bitcoin and apologized for the incident.
Exchange moves to contain erroneous payout as Bitcoin price slides
The company said the payout error was not linked to hacking or any external security breach. It added that its systems and customer asset management remain secure.
Despite the rapid response, a small number of users managed to sell or trade the Bitcoin before restrictions took effect. Bithumb told local media it has yet to recover 125 Bitcoin, worth about $9 million, from a limited group of customers. The exchange said it will cover those remaining losses using its own corporate funds.
INTEL: Bithumb employee reportedly sent hundreds of users 2,000 $BTC during an airdrop instead of the intended token, causing Bitcoin to trade about 10% lower on the exchange than the broader market pic.twitter.com/LhMnh4puUy
— Solid Intel 📡 (@solidintel_x) February 6, 2026
The incident disrupted trading on the platform and briefly weighed on prices. Data from Bithumb showed Bitcoin fell about 17% during the selloff, dropping to 81.1 million won ($55,000). The price later rebounded to around 104.5 million won ($72,000).
Regulators launch inspections after South Korean crypto exchange error
South Korea’s financial regulators responded quickly. The Financial Services Commission said the incident exposed weaknesses in the virtual asset sector. Officials said they would review internal control systems at domestic exchanges and conduct on-site inspections if irregularities were found.
The newspaper Kookmin Ilbo reported that regulators began an inspection at Bithumb’s offices on Feb. 7. Investigators reportedly asked for a list of employees authorized to approve cryptocurrency payments. Sources cited by the paper described the incident as revealing structural vulnerabilities in operational processes.
Reports said Bithumb’s internal systems allowed employees to issue loyalty points, Korean won, Bitcoin, and Ethereum without formal settlement checks, increasing the risk of payout errors.
Internal controls, customer compensation and IPO plans under pressure
In an internal email to staff, Exchange Business Division Vice President Hwang Seung-wook said the mistake showed weaknesses in internal procedures. He said a single configuration error should not be able to disrupt an entire exchange and that the company would focus on fixing oversight failures rather than assigning blame.
Bithumb announced compensation measures for users affected by abnormal trading conditions. The exchange said customers who sold Bitcoin at unusually low prices would receive the full value of their sale plus an additional 10%.
It also said it would waive trading fees across all markets for seven days starting Feb. 9 and provide 20,000 Korean won ($15) to users active at the time of the incident.
The error comes at a sensitive time for the South Korean crypto exchange, which has been pursuing plans to become the first domestic platform to go public in the United States this year. Earlier this month, South Korea’s consumer protection watchdog opened an investigation into Bithumb’s marketing practices.
