South Korean exchange Bithumb's catastrophic input error—sending 620,000 Bitcoin instead of 620,000 KRW in a promotional distribution—continues to unfold. While the exchange froze affected accounts within 35 minutes and recovered 99.7% of the mis-sent assets, 125 BTC (~13 billion KRW) remain unreturned, and over 80 users managed to cash out before the freeze took effect.
13 Billion KRW Still at Large
According to SBS, Bithumb's internal controls flagged the anomaly about 20 minutes after the incident. Within 35 minutes, trading and withdrawal functions were frozen for 249 users. Despite swift action, 125 Bitcoin are still in the wild. One user reportedly shared: "Someone posted that their wallet suddenly had 2,000 Bitcoin—that's over 200 billion KRW!"
The cashed-out portion adds complexity: ~3 billion KRW was transferred to personal bank accounts, and ~10 billion KRW was used to purchase other cryptocurrencies. Whether these actions constitute unjust enrichment or criminal liability will likely be the core legal battle ahead.
Bithumb's Compensation Strategy
To soothe affected users, Bithumb announced that those who sold Bitcoin before the freeze can keep the full price difference plus an extra 10% compensation. All affected accounts also receive a one-week trading fee waiver. Industry watchers view this as a bid to retain users amid a crisis, though it also signals the exchange's willingness to mend its internal control failure.
Regulatory Probe and IPO Risks
South Korea's financial authorities have confirmed they will investigate the incident. The gaffe exposes serious operational flaws at Bithumb and reignites scrutiny of exchange risk management. With the exchange actively pursuing a US IPO, tightening internal controls is no longer optional—it's existential.