South Korean exchange's $40B Bitcoin mistake casts pall over country's fledgling crypto legislation — staffer fat-fingered 620,000 BTC instead of Korean Won
Source: Tom’s Hardware
Image credit: Getty Images
What happened
A few days ago, South Korean crypto exchange Bithumb ran a promotion that was supposed to distribute small cash prizes totaling 620,000 ₩ (about $425). A staff member mistakenly entered 620,000 BTC instead of Korean won, creating a $40 billion error that temporarily granted millions of dollars worth of Bitcoin to multiple users. The blunder caused Bithumb’s BTC/KRW trading pair to drop 17 %.
The incident lasted about 30 minutes and was confined to Bithumb’s internal database; the blockchain itself prevented any actual creation of new coins. Nonetheless, the fact that the exchange could issue an amount 15 times larger than its holdings (effectively a naked short) raised serious concerns in South Korea’s financial community, where cryptocurrency trading is moving toward full legalization.
Aftermath and legal response
According to Reuters, Bithumb reversed the erroneous transactions and recovered 99.7 % of the mistakenly issued BTC. South Korean law (paraphrased) obligates recipients of funds that appear “out of nowhere” to return them. Bithumb therefore has legal standing to pursue users who do not comply, as reported by local media and Cryptopolitan.
Most recipients returned the funds after being contacted, but those who sought confirmation before withdrawing may be able to contest the claw‑back.
References
- A Bitcoin blunder for the ages: $40 billion accidentally given away
- Reuters coverage of the reversal and recovery
- Bithumb may sue to recover mistakenly sent Bitcoin