A South Korean crypto exchange mistakenly paid out $40 billion in Bitcoin to customers instead of small cash rewards. Platform Bithumb intended to distribute 2,000 won ($1.37) per customer but erroneously sent 2,000 Bitcoins each on Friday. The error briefly created instant multi-millionaires.
Bithumb swiftly restricted trading and withdrawals, recovering 99.7% of the 620,000 Bitcoins within 35 minutes. The firm clarified the incident was an internal processing error, not a hack or security breach.
South Korea’s financial regulator announced it will review the event, promising formal investigations if illegal activity is found. Bithumb’s CEO pledged full cooperation, stating the company will prioritise customer trust over external growth.
As compensation, affected users will receive 20,000 won ($13.66) and waived trading fees. Bithumb also plans to upgrade verification systems and implement AI to detect abnormal transactions.
This case highlights risks in digital finance, likely prompting calls for stricter oversight. It follows similar high-value errors, such as Citigroup’s $81 trillion mistaken transfer in April 2024.
