Will Bithumb Compensate Users After a 620,000-Bitcoin Transfer Blunder?
Synopsis
Bithumb, South Korea's leading cryptocurrency exchange, is taking responsibility for a major transfer blunder involving 620,000 bitcoins. Customers affected by panic selling will receive full reimbursements plus bonuses. This incident has sparked concerns over investor protection in the crypto space, prompting a review by regulatory authorities.
Key Takeaways
Bithumb will compensate users for losses due to panic selling.
The exchange accidentally transferred 620,000 bitcoins during a promotional event.
Affected users will receive full reimbursement plus an additional 10% compensation .
Trading fees will be waived for a week on all listed assets.
The FSS is investigating the incident for user protection measures.
Seoul, Feb 8 (NationPress) Bithumb, a prominent cryptocurrency exchange in South Korea, announced on Sunday its intention to refund users who experienced financial losses due to panic selling caused by an internal transfer mishap last week.
The exchange inadvertently transferred 620,000 bitcoins to 249 promotional event participants around 7 p.m. last Friday, according to a report from Yonhap.
This incident equated to an average of 2,490 bitcoins per user, totaling approximately 244 billion won (around $166 million). Some recipients opted to sell their bitcoin, leading to a temporary yet significant decline in prices.
Bithumb stated that it would fully reimburse the affected users and additionally offer a 10% compensation.
The exchange will also suspend trading fees on all listed assets for a week starting at midnight on Monday.
Bithumb has implemented a comprehensive crisis management strategy, overseen by senior executives, and established a task force to mitigate investor losses.
Previously, Bithumb reported recovering 618,212 bitcoins and has since managed to recapture 93% of the 1,788 bitcoins sold by users.
Transactions and withdrawals from affected users' accounts were halted at 7:40 p.m. that evening, with 125 bitcoins still unrecovered.
The mishap occurred when a Bithumb employee mistakenly entered the payment unit as 'BTC' instead of 'Korean won' for rewards in the promotional event.
This error caused a brief decline in bitcoin prices on Bithumb as users liquidated their received bitcoins.
Bithumb estimates the total losses incurred by customers from this erroneous payment to be around 1 billion won.
The company verified instances where transactions occurred under unfavorable conditions and has pledged to reimburse affected customers by covering the full price difference plus an additional 10% bonus.
CEO Lee Jae-won expressed his apologies and committed to taking full accountability for the incident. The Financial Supervisory Service (FSS) will investigate the exchange's user protection measures and assess the potential for a complete recovery of the erroneously transferred bitcoins.
Point of View
It is crucial to recognize that while Bithumb's response to the recent transfer error is commendable, it underscores the need for robust regulatory oversight in the cryptocurrency market. This incident not only affects individual investors but also raises broader questions about the safety and reliability of digital asset exchanges in South Korea.
NationPress
29 Jul 2026
Frequently Asked Questions
What caused the accidental bitcoin transfer at Bithumb?
The transfer error occurred when a Bithumb employee mistakenly input 'BTC' instead of 'Korean won' for a promotional event reward.
How much will Bithumb reimburse the affected users?
Bithumb plans to fully compensate affected users for their losses, plus an additional 10% compensation.
What measures is Bithumb taking following the incident?
Bithumb has initiated a crisis management system led by senior executives and formed a task force to address investor losses.
Has Bithumb recovered the transferred bitcoins?
Yes, Bithumb has recovered 618,212 bitcoins and has recouped 93% of the bitcoins sold by users.
What actions will the Financial Supervisory Service take regarding this incident?
The FSS will investigate Bithumb's measures for user protection and the potential for recovering the mistakenly sent bitcoins.
