Bithumb's Massive Crypto Mishap: $40B Bitcoin Mistakenly Sent to Customers

Feb 7
3 min read

Key Findings

On February 6, 2026, South Korean cryptocurrency exchange Bithumb accidentally credited 620,000 bitcoins (worth around $40 billion) to 695 customer accounts instead of the small rewards (worth around $1.40) they were supposed to receive.
The error occurred due to a system configuration mistake during a promotional event, where the payment unit was mistakenly set as "BTC" instead of "Korean won".
Bithumb was able to recover 99.7% of the mistakenly distributed bitcoins within 35 minutes of identifying the error, restricting trading and withdrawals on the affected accounts.
The sudden increase in available bitcoin supply on Bithumb's order books led to a brief 17% price drop on the exchange before stabilizing.
Regulators in South Korea have responded by holding emergency talks and signaling potential on-site inspections of Bithumb's operations and controls.

Background

Bithumb, one of South Korea's largest cryptocurrency exchanges, has a history of security breaches and internal lapses that have raised concerns about its ability to protect user funds and data. In 2018, the exchange was hacked, resulting in a $31 million loss. In 2024, another breach involving an alleged insider theft led to losses of around $20 million.

The latest incident, where Bithumb mistakenly credited massive Bitcoin balances to customer accounts, adds to the exchange's troubled track record and has once again drawn the attention of regulators. This operational error, while not a security breach, highlights the need for tighter controls and oversight in the cryptocurrency trading industry.

The Mistaken Payout Incident

On February 6, 2026, during a promotional event, Bithumb intended to reward users with small amounts worth around 2,000 South Korean won (approximately $1.40).
Due to a system configuration error, the payment unit was mistakenly set as "BTC" instead of "Korean won," resulting in around 620,000 bitcoins (worth $40 billion) being credited to 695 customer accounts.
Each of the affected accounts received an average of 2,490 bitcoins, worth 244 billion won ($166 million) per account.
Bithumb quickly identified the issue and halted transactions and withdrawals on the affected accounts within 35 minutes.
The exchange was able to recover 99.7% of the mistakenly distributed bitcoins, with only 125 bitcoins remaining unrecovered.

Impact and Regulatory Response

The sudden influx of available bitcoin supply on Bithumb's order books caused a brief 17% price drop on the exchange before stabilizing.
Regulators in South Korea, including the Financial Supervisory Service (FSS), have responded by holding emergency talks and signaling potential on-site inspections of Bithumb's operations and controls.
The FSS will investigate Bithumb's measures to protect user assets and the exchange's ability to fully recover the mistakenly distributed bitcoins.
This incident has further eroded confidence in Bithumb and raised concerns about vulnerabilities in the broader cryptocurrency trading ecosystem, potentially leading to stricter regulatory oversight.

Bithumb's Troubled History

Bithumb has a reputation for security breaches and internal lapses, with previous incidents in 2018 and 2024 resulting in significant losses of user funds.
The 2018 hack saw $31 million worth of cryptocurrency stolen from the exchange, while the 2024 breach involved an alleged insider theft of around $20 million.
Each incident has added to the perception that Bithumb's problems are not isolated events but part of a pattern that requires tighter oversight and clearer accountability.
The latest operational error, while not a security breach, further undermines confidence in the exchange and heightens calls for regulators to take a closer look at its practices and controls.

Sources

https://hackread.com/bithumb-sends-bitcoin-to-customer-accounts/
https://en.yna.co.kr/view/AEN20260207001551320?section=economy-finance%2Feconomy