The South Korean cryptocurrency exchange Bithumb has announced the recovery of a remarkable 99.7% of the Bitcoin that was erroneously distributed during a rewards promotion on February 6, 2026. The incident, attributed to an internal system error, led to the temporary disbursement of 620,000 BTC across 695 user accounts.
This promotional blunder not only raised questions about internal safeguards at Bithumb but also caused a significant fluctuation in Bitcoin’s price within their platform. The BTC/KRW pair plummeted to approximately $55,000, although the price of Bitcoin remained stable at above $66,000 across other exchanges during the same period.
What Went Wrong?
Bithumb’s official statement clarified that the mishap stemmed from a misconfiguration in their system, which mistakenly credited users with Bitcoin instead of the intended 2,000 Korean won incentive. The company swiftly identified the issue, freezing affected accounts to mitigate further losses and confirming the error was purely operational and unrelated to any security breaches.
Recovery Efforts and User Compensation
Within a short span of time, Bithumb managed to recuperate nearly all of the wrongfully distributed Bitcoin. For the miniscule fraction sold before the freeze, the exchange replenished user accounts using its own funds. By the end of February 7, all user balances had been restored.
No customer assets were lost during the incident,
To further support users affected by this unprecedented situation, Bithumb has pledged to fully reimburse those who sold their erroneously received Bitcoin at lower prices. As a gesture of goodwill, the exchange will also provide an additional 10% bonus to these customers.
Regulatory Scrutiny
The incident has not gone unnoticed by South Korean authorities. The Financial Services Commission (FSC) has initiated a formal investigation, with an emergency inspection meeting convened on February 7 in Seoul, led by FSC Vice Chairman Kwon Dae-young. Other regulatory bodies, including the Financial Supervisory Service and the Financial Intelligence Unit, have joined the monitoring efforts regarding Bithumb’s remedial measures.
Bithumb’s CEO, Lee Jae-won, publicly acknowledged the error and extended an apology, assuring customers that the company takes full accountability and is committed to preserving user trust.
Preventative Measures Moving Forward
In light of this incident, Bithumb has established an internal task force dedicated to enhancing their operational systems to avert future errors of this nature. Initiatives include improved monitoring tools, automated alerts, and stringent checks for all reward-based campaigns. The exchange is also enhancing staff training and upgrading internal risk control systems.
This event has prompted us to further tighten our internal operations,
As trading on Bithumb returns to normalcy, the platform has reaffirmed that user assets are secure, while the investigation continues to unfold. With regulatory bodies scrutinizing operational practices, Bithumb is under pressure to demonstrate its commitment to security and reliability in this ever-evolving cryptocurrency industry.
