Bithumb, one of South Korea's largest crypto exchanges, suffered a major operational glitch on July 22 when an airdrop intended to deliver 2,000 won ($1.37) per user instead credited each recipient with 2,000 BTC, collectively worth over $40 billion. The exchange quickly locked down 695 affected accounts within 35 minutes, ultimately recovering 99.7% of the mistakenly distributed bitcoin.
35-Minute Freeze, 99.7% Recovery Rate
Bithumb confirmed the error originated from a configuration fault during the airdrop execution. Instead of sending a small token reward, the system released 2,000 BTC per user. Technical teams identified the anomaly within 35 minutes and immediately suspended deposits and withdrawals for those accounts. Binance founder Changpeng Zhao (CZ) posted on social media: "We helped in this recovery effort, a tiny bit. I didn't tweet when it first happened, to not spread FUD. A human error of $134m vs $1,340. All airdrop features should have a maximum value check." As of press time, 99.7% of the funds have been retrieved.
Financial Supervisory Service Intervenes, CEO Prioritizes Trust
South Korea's Financial Supervisory Service (FSS) held an emergency meeting and vowed to investigate any suspected illegal activities. Bithumb CEO Lee Jae-won publicly apologized, stating: "We will take this accident as a lesson and focus on 'customer trust and peace of mind,' not on external growth." The exchange is offering 20,000 won ($13.66) compensation to all users active at the time, waiving trading fees, and strengthening KYC procedures.
AI Monitoring to Prevent Human Errors
To prevent future mishaps, Bithumb plans to deploy AI-based monitoring systems that can flag abnormal transactions in real time. The incident mirrors a 2024 Citigroup error where a customer was mistakenly credited $81 trillion instead of $280. Bithumb reiterated that no external breach or hack occurred, and user funds remain secure.