A simple unit mix-up at a South Korean crypto exchange accidentally handed $44 billion in Bitcoin to ordinary users, exposing the wild risks of unregulated digital currencies that could destabilize global markets.
Story Snapshot
- Bithumb erroneously distributed 620,000 BTC worth $44 billion to 695 users instead of small Korean won prizes.
- Exchange recovered 99.7% of funds within hours, but users withdrew about 3 billion KRW ($2.2 million) before freeze.
- Incident caused 17% Bitcoin price drop on platform, sparking panic among traders worldwide.
- South Korean regulators launched emergency inspections, highlighting dangers of human error in high-stakes crypto operations.
The Catastrophic Error Unfolds
On February 6, 2026, at 7:00 PM KST, Bithumb launched its “Random Box” promotional event for 695 selected users. Management intended to award small cash prizes of 2,000 to 50,000 Korean won, equivalent to $1.40 to $35. A critical mistake occurred when staff entered the payout unit as Bitcoin (BTC) instead of Korean won (KRW). Each winner instantly received at least 2,000 BTC, totaling around 620,000 BTC valued at $44 billion or 60 trillion KRW at prevailing prices near $71,000 per BTC. Over 240 users opened their boxes that evening.
Bithumb detected the glitch within 35 minutes and froze trading and withdrawals for affected accounts. Some quick-acting users sold portions of their windfall BTC, causing the platform’s BTC price to plummet 10-17% to about 81 million KRW. Approximately 1,788 BTC were sold, resulting in confirmed withdrawals of around 3 billion KRW. The rapid sales amplified market panic on the exchange, testing its liquidity amid high global Bitcoin prices.
Swift Recovery and Lingering Losses
By February 7 morning, Bithumb recovered 99.7% of the distributed Bitcoin, reclaiming 618,212 BTC. The exchange absorbed losses from its own capital and issued a statement confirming no external hacking or system security breach. About 125 BTC, worth roughly 12.3 billion KRW or $9 million, remained unrecovered due to user sales. Trading and withdrawals stayed restricted for involved accounts to prevent further issues. Bithumb management took full responsibility for the procedural failure.
The incident echoes Bithumb’s 2018 hack where thieves stole $30 million, underscoring persistent risk management challenges at the major South Korean exchange. South Korea’s heavily regulated crypto sector, shaped by past volatilities like the “kimchi premium” and global failures such as FTX, now faces this as a key test case under the 2024 Virtual Asset User Protection Act.
Regulatory Scrutiny and Industry Fallout
South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) held an emergency meeting on February 7 and confirmed the 3 billion KRW withdrawals. Regulators announced plans for on-site inspections to review Bithumb’s internal controls, citing exposed vulnerabilities in automated payout systems. FSC emphasized the need to prevent systemic risks in virtual assets, potentially leading to stricter rules on promotions and error-proofing.
The event reignites debates on crypto reliability, with experts questioning the lack of pre-checks for billion-scale transactions. Short-term impacts include Bitcoin price volatility and reputational damage to Bithumb, while long-term effects may slow promotional events and boost global audits. Affected users experienced brief windfalls, but online communities buzz with concerns over crypto’s human-error susceptibility. For Americans watching under President Trump’s pro-innovation stance, this validates calls for cautious deregulation without big government overreach.
Sources:
Crypto glitch sends $44 billion in Bitcoin to users by mistake
Bithumb glitch: $44 bn in bitcoin sent to users in error
