Bithumb accidentally distributed approximately 620,000 BTC (worth ~$43 billion) due to a system configuration error during a rewards event.
The glitch credited 2,000 BTC per user instead of the intended 2,000 Korean won ($1.40).
Localized Bitcoin prices on the exchange plunged 17% as recipients immediately attempted to liquidate the unexpected windfall.
The exchange has recovered 99.7% of the assets and pledged to compensate users affected by the resulting price volatility.
Bithumb, South Korea’s second-largest cryptocurrency exchange by volume, is working to stabilize its operations following a massive internal blunder that saw it accidentally credit hundreds of users with approximately **$43 billion in “ghost” bitcoin**. The incident, which unfolded on Friday, February 6, was triggered by a critical unit-entry error during a routine customer incentive program known as the “Random Box” event.
According to reports from The Chosun Ilbo, the exchange intended to reward 695 participants with small cash prizes of 2,000 Korean won (roughly $1.40). However, the system mistakenly applied the unit of Bitcoin (BTC) instead of fiat currency, resulting in 2,000 BTC being deposited into each recipient’s internal account ledger. At current market rates, the total value of the erroneous distribution reached roughly 60 trillion won.
The massive influx of unintended liquidity led to immediate market turbulence. As recipients discovered the windfall and began selling their balances, Bithumb experienced a localized flash crash. The BTC/KRW pair on the platform slumped by as much as 17%, hitting a low of 81.1 million won while global prices on exchanges like Binance remained stable. Bithumb’s risk management protocols eventually detected the anomaly, leading to a suspension of trading and withdrawals for affected accounts within 35 minutes of the event.
In an official statement, Bithumb clarified that the assets involved were internal ledger entries rather than on-chain transfers, which allowed the platform to recover 99.7% of the distributed funds. “We would like to make it clear that this incident is unrelated to external hacking or security breaches,” the exchange stated in a report carried by Reuters. Bithumb emphasized that there were no vulnerabilities in customer asset management and that the error was purely an internal accounting failure.
The Financial Supervisory Service (FSS) in South Korea has since announced an emergency investigation into Bithumb’s internal controls. To mitigate the impact on its broader user base, the exchange has committed to a compensation plan for those who suffered from “panic selling” or executed trades at unfavorable prices during the crash. Affected users are expected to receive the full price difference plus a 10% bonus. Bithumb CEO Lee Jae-won noted that the company would use the incident as a “major lesson” to prioritize internal verification systems over rapid growth.
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