South Korean cryptocurrency exchange Bithumb has confirmed it successfully recovered 99.7% of Bitcoin mistakenly credited to users following a promotional system error, covering the remaining shortfall with company funds to protect customer balances.
The incident occurred during a promotional event when a technical issue caused certain user accounts to receive significantly more Bitcoin than intended. Some recipients quickly sold the excess funds, briefly triggering sharp price movements on the exchange before the situation was contained.
Bithumb Covers 1,788 Bitcoin Sold During the Incident
In an official statement released Sunday, Bithumb said it reclaimed the majority of the overpaid Bitcoin on the same day the error occurred. The remaining 0.3%, equivalent to 1,788 BTC, had already been sold on the market. To resolve this, Bithumb used its own reserves to ensure all user balances remained fully backed.
The exchange emphasized that its Bitcoin holdings and other digital assets are equal to or greater than total user deposits, reaffirming that no customer funds were lost. Most of the excess Bitcoin was retrieved directly from affected accounts, while the sold portion required reimbursement from corporate funds.
Bithumb also clarified that the incident was not the result of a hack. Deposits and withdrawals continued to operate normally throughout the event, and trading was stabilized within minutes after the affected accounts were restricted.
User Compensation and Broader Exchange Reliability Concerns
To compensate users impacted by the disruption, Bithumb announced several measures. All users connected to the platform at the time of the incident will receive 20,000 Korean won (approximately $15). Traders who sold Bitcoin at unfavorable prices during the volatility will receive full reimbursement of their sale value, along with an additional 10% compensation payment. The exchange will also waive trading fees across all markets for seven days starting Monday.
While Bithumb did not disclose the total amount of Bitcoin involved, some users estimated that roughly 2,000 BTC had been mistakenly credited.
The incident highlights ongoing operational challenges faced by centralized cryptocurrency exchanges. In recent months, platforms like Coinbase and Binance have also faced criticism over account restrictions and technical failures during periods of high market volatility, prompting large-scale compensation efforts and infrastructure upgrades.
