On February 6, 2026, South Korea's largest crypto exchange Bithumb suffered a catastrophic operational error during a routine marketing event. An employee mistakenly chose Bitcoin as the currency unit for a cash prize of 2,000 Korean won (about $1.40). Instead, each eligible user received 2,000 BTC in internal credit, totaling 620,000 BTC — worth roughly $44 billion at the time.
$44 Billion Glitch: How a Unit Selection Caused Chaos
According to Bithumb's disclosure, the intended reward was a small cash bonus. The error occurred because the system lacked a second confirmation step for payout parameters. Once executed, the credited BTC appeared as tradeable balances within the platform. Hundreds of users immediately dumped the unexpected holdings, crashing Bithumb's BTC price by 17% to 81 million won (~$55,000) within minutes. Meanwhile, global BTC prices held steady near $66,000, creating a reverse Kimchi premium — a rare discount on Korean exchanges.
Bithumb's security systems flagged the abnormal trades within five minutes. The exchange froze 695 affected accounts and halted all withdrawals. By the next day, Bithumb reported recovering 99.7% of the mis-credited funds. However, approximately $2.2 million had already been withdrawn by users before the freeze. The platform is now working with police to recover the remaining amount.
Regulatory Scrutiny and Industry Lessons
The incident highlights how human error remains a major risk even for large exchanges. Experts urge all centralized platforms to implement dual-approval systems for high-value disbursements — a single employee should never be able to authorize multi-billion-dollar transfers. South Korean financial regulators have launched a review of Bithumb's internal controls, demanding stricter safeguards to prevent a recurrence.
As crypto markets grow in 2026, this event serves as a stark reminder that operational lapses can trigger immediate, severe price dislocations. The industry is now eyeing automated risk checks and multi-step approval workflows as standard requirements for all exchanges. Bithumb's mistake may accelerate the adoption of such measures globally.