In an extraordinary technological mishap, South Korean cryptocurrency exchange Bithumb accidentally credited users with more than $40 billion worth of bitcoin, briefly making hundreds of customers paper millionaires and triggering a rapid sell-off before officials halted trading and reverted the erroneous transfers. The incident — one of the largest errors in the history of digital assets — has drawn scrutiny from regulators as well as the global crypto industry.
The Mistaken Distribution: From Rewards to Billions
The error occurred on 6 February 2026, when Bithumb, one of South Korea’s major cryptocurrency trading platforms, attempted to credit users with modest promotional rewards as part of a campaign. Instead of depositing about 2,000 Korean won (roughly $1.40) to each account, the system erroneously assigned at least 2,000 bitcoins per selected user — equivalent to billions of dollars at current market prices.
Bithumb said the error was detected swiftly, and within 35 minutes it restricted trading and withdrawals for the 695 affected customers, and subsequently recovered approximately 99.7 per cent of the 620,000 bitcoins that had been mistakenly credited.
Market Chaos: Price Droops and Swift Correction
Although the erroneous credits were limited to Bithumb’s internal ledger and did not involve real “on-chain” transfers of bitcoin, the mere reflection of such vast balances on the exchange triggered panic trading. Bitcoin prices on Bithumb plunged as much as 17 per cent in a matter of minutes before later stabilising, underscoring the fragility of sentiment in digital asset markets.
The episode highlighted how even bookkeeping errors on a single platform can ripple through markets — especially when they involve massive notional values and automated trading systems.
Company Response: Apology and Assurance
Bithumb quickly issued a public apology, emphasising that the mistake was due to an internal reward distribution process and not the result of hacking or a security breach, efforts to reassure customers about the safety of their assets. “There are no problems with system security or customer asset management,” a company spokesperson stated in a blog post on Saturday.
To prevent future incidents, Bithumb said it is reviewing its internal processes, including adding more robust verification checks for promotional payouts and enhancing safeguards around automated crediting systems.
Regulatory Fallout and Sector Oversight
South Korea’s Financial Services Commission (FSC) — the primary regulator overseeing capital markets, including virtual assets — held an emergency meeting in the wake of the blunder. Officials described the event as exposing the vulnerabilities and risks inherent in the rapidly growing crypto sector, and indicated that regulators would undertake on-site inspections of Bithumb and other exchanges if they find systemic control weaknesses.
While Bithumb avoided a full-scale crisis by recovering the vast majority of the misplaced bitcoin, the regulator’s response signals heightened scrutiny of cryptocurrency platforms, with potential implications for compliance standards, audit requirements and consumer protection measures across the industry.
Customer Impact: Temporary Millionaires and Compensation
For about half an hour, dozens of users saw extraordinary bitcoin balances in their accounts, instantly elevating them to virtual multi-millionaire status. Although the credits were reversed, the incident sparked a frenzy of trading activity before deposit corrections. Bithumb has since pledged compensation measures for active users affected by the disruption and has promised to waive fees and offer token credits to bolster customer trust.
Despite the correction, the psychological impact on users and broader crypto participants was palpable, prompting heated discussion on social media and trader forums about internal exchange controls and the risks of automated reward systems.
Industry Reaction: Debating Risk and Stability
Market analysts and industry observers have expressed concern that such a dramatic error — even if quickly rectified — could undermine confidence in self-regulated digital asset platforms. “This incident underscores the importance of risk-management protocols, clear audit trails and external oversight,” one blockchain analyst said, noting that exchanges must balance innovation with operational rigor.
Some experts also suggested that the episode could accelerate regulatory momentum in South Korea and beyond, prompting closer alignment between crypto exchanges and traditional financial oversight frameworks.
Looking Ahead: Lessons for Crypto Exchanges
While Bithumb’s gaffe may be one of the most spectacular bookkeeping errors in the history of cryptocurrency, its rapid correction reflects the resilience of centralized exchange infrastructure when strong internal controls are applied — even if only after an error is detected.
Moving forward, both market participants and regulators are expected to revisit standards for platform integrity, error detection systems, and consumer safeguards, as the broader digital asset ecosystem continues to mature amid ongoing technological, economic and regulatory challenges.
