- Bithumb recovers nearly all of its overpaid Bitcoin.
- Shortfall covered with corporate funds.
- Incident reported to financial authorities immediately.
Bithumb, a South Korean cryptocurrency exchange, successfully recovered 99.7% of overpaid Bitcoin amounting to 620,000 BTC due to an error on February 6, 2026.
The incident underscores the importance of robust internal controls in cryptocurrency exchanges, as market reactions included a 17% temporary price plunge in Bitcoin on Bithumb.
Bithumb, a South Korean cryptocurrency exchange, recently faced a significant crisis where it overpaid approximately 620,000 BTC to its users due to a promotional error. The company recovered 99.7% and addressed the shortfall with internal funds.
Lee Jae-won, CEO of Bithumb, publicly apologized and took responsibility for the miscalculation, submitting a report to the Financial Supervisory Service. Bithumb’s swift action blocked transactions within 35 minutes, demonstrating effective crisis management.
Taking full responsibility for the incident, we have initiated an investigation and are committed to ensuring such errors do not occur in the future. – Lee Jae-won, CEO, Bithumb
Following the error, Bitcoin’s price temporarily plummeted by 17% on the Bithumb platform. Affected users rapidly sold the overpaid Bitcoin, impacting the exchange’s operations and requiring immediate rectification measures.
The incident attracted regulatory scrutiny, prompting Bithumb to announce a compensation plan. A 110% refund was offered to panic sellers, and a fund of KRW 100 billion was established for customer protection, signaling financial firmness.
The Financial Supervisory Service began an inspection on February 7 to assess the situation and ensure preventive measures. This incident highlights potential systemic vulnerabilities, emphasizing the necessity for stringent internal controls.
This incident did not affect external wallets or on-chain activities, as no external transfers were confirmed. The recovery showcases Bithumb’s commitment to addressing issues rapidly, potentially setting a precedent for future procedural improvements.
Read also :
- FOMC’s March Rate Decisions Create Market Ripples
- Remittix (RTX) Refines Execution Logic as PaymentFi Infrastructure Moves Toward Operational Maturity
- Bitcoin’s Potential Decoupling from Easing Policies Discussed
- Galaxy Digital Announces $200M Share Buyback Amid Market Challenges
- Remittix Receives Mixed User Reviews as Customers Cite Payment and Support Concerns
