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Bitcoin Blunder: South Korean Crypto Exchange Bithumb Accidentally Gives Away $40bn
Bithumb's system flaws caused a $40 billion bitcoin transfer error, triggering a 17% price drop; most coins were recovered but 1,786 bitcoins remain missing, CEO said.
- On Wednesday, Bithumb admitted severe flaws allowed a mistaken $40 billion bitcoin transfer of 620,000 bitcoins to customers, triggering a 17% plunge in bitcoin prices on Bithumb.
- Bithumb CEO Lee Jae-won said a 24-hour processing lag and delayed balance updates allowed incorrect transfers, and admitted, `We are acutely aware of the deficiency in internal system control`.
- The exchange said it has recovered most of the bitcoin but some sold minutes before accounts frozen by Bithumb remain missing, and sellers are legally obliged to return them.
- The Financial Supervisory Service said Sunday it will start investigations into high-risk practices and plans to build automated detection and AI text-analysis tools to flag suspicious trading patterns.
- The scale of retail exposure means South Korea's 10 million investors increase pressure for tougher market surveillance and exchange practices, including at Upbit and Bithumb.
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21 Articles
21 Articles
A technical error led to the distribution of 620,000 Bitcoins instead of modest promotional rewards. A massive distribution by mistake turned a promotional campaign for the Korean exchange Bithumb into a crisis after 620,000 Bitcoins (approximately $40 billion) were distributed instead of rewards of only a few hundred dollars, due to a data entry error.
·Amman, Jordan
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The Korean Bithumb platform made a mistake with devastating consequences in a promotional operation. Following a contest game, it transferred $40 billion in bitcoin instead of $425 billion to its customers.
Coverage Details
Total News Sources21
Leaning Left1Leaning Right1Center2Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
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