TLDR
- Bithumb mistakenly sent 620,000 BTC to 695 users on February 6 during an event payout.
- The exchange meant to send 620,000 won to 249 users, not Bitcoin.
- Bithumb found the error within 20 minutes and halted transactions.
- Seven Bitcoin remain unrecovered, now worth more than $500,000.
- Bithumb has started provisional attachment proceedings to recover the missing assets.
Bithumb is still trying to recover seven Bitcoin after a mistaken event payout sent 620,000 BTC to users. The South Korean exchange has now started legal action to reclaim the remaining assets. The case follows one of the most striking payout errors reported by a crypto platform this year.
Bithumb starts legal process to recover remaining Bitcoin
Bithumb has begun provisional attachment proceedings to recover seven Bitcoin that remain unreturned. Chosun Biz reported the latest move on Thursday. The exchange is focusing on the assets still held by users after the mistaken transfer.
The error took place on February 6 during an event payout. Bithumb had planned to distribute 620,000 won to 249 users. Instead, it sent 620,000 BTC to 695 users because of an input mistake.
The exchange detected the problem within 20 minutes and then halted transactions. After that, Bithumb contacted recipients and worked to recover the funds. Most of the assets were returned through direct outreach.
Still, some users did not return the Bitcoin. The seven Bitcoin left were worth about 700 million won at the time. At current prices, the same amount is worth more than $500,000.
Error grew from won payout into a Bitcoin distribution
The intended payout was small and linked to a promotional event. However, the wrong input changed the asset and the amount. As a result, the exchange sent Bitcoin instead of Korean won.
That mistake turned a routine payment into a major recovery effort. The wrong distribution reached 695 users. The intended payment had been meant for 249 users only.
Legal experts cited in the report said users are likely required to return the assets. They pointed to unjust enrichment rules in South Korea. Those rules generally apply when someone keeps funds received by mistake.
Some recipients may face added costs if they already sold the Bitcoin. If prices rose after the payout, buying the assets back would cost more. That may increase the burden for users who no longer hold the coins.
Bithumb offers compensation and adds new safeguards
After the incident, Bithumb said it would fully compensate customers affected by the mistake. Chief Executive Officer Lee Jae-won said users would receive “110%” compensation. The company also announced broader support steps for customers.
Bithumb said all customers who accessed the platform during the incident would receive “20,000 won”. It also waived trading fees for seven days. Those measures were meant to address service disruption and customer concern.
At the same time, the exchange said it was working with authorities. It also said it would strengthen internal controls around payouts. The company plans to improve asset checks and approval steps.
Bithumb said new safeguards would include enhanced asset verification and multi-step payment approvals. It also plans AI-based monitoring for unusual activity. In addition, the exchange said it would set up a permanent 100 billion won customer protection fund.
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