US EditionSouth Korean Crypto Exchange Bithumb Accidentally Gave Away Billions
Bithumb recovered 99.7% of 620,000 bitcoins mistakenly credited to 695 users and will compensate losses using corporate assets, following a brief price disruption on its platform.
- Bithumb, South Korean cryptocurrency exchange, said it accidentally credited 620,000 bitcoins worth about $44 billion to users and restricted trading and withdrawals for 695 affected users within 35 minutes.
- A system configuration error during the Friday promotional payout caused the reward to be entered as roughly 2,000 bitcoins per user instead of a 2,000 South Korean won reward.
- Prices on Bithumb plunged as much as 17 to 81.1 million won during the glitch, with some users engaging in `panic selling`, then recovered within five minutes.
- After the glitch, authorities warned they would review internal controls and launch on-site inspections of Bithumb if irregularities emerge, while Bithumb pledged to compensate affected customers fully, including a 10% bonus.
- Given Bithumb's recent raids and past hacks, Arkham Intelligence said Bithumb has roughly $5.3 billion in assets, far below the $43 billion it credited, raising concerns about `paper bitcoin`.
74 Articles
74 Articles
A South Korean cryptocurrency exchange apologized on Saturday for mistakenly transferring more than $40 billion worth of bitcoin to users, briefly triggering a sell-off on the platform.
He had planned to reward each of his customers with a 2,000 won bonus as part of a promotional campaign - Instead, each "lucky" person received 2,000 bitcoins
The company accidentally transferred 2,000 bitcoin to their account, instead of 2,000 South Korean won (1.15 euros).
They managed to get back 99.7 percent of the donated bitcoins, they say.
During an innocent promotional campaign, the South Korean exchange Bithumb mistakenly gave away hundreds of thousands of bitcoins worth tens of billions of euros to users, causing chaos, a fire sale and a temporary price crash.
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