Bithumb recovered 99.7% of 620,000 Bitcoin sent by mistake during a promo, after briefly triggering a flash crash on its platform.
South Korean cryptocurrency exchange Bithumb has recovered nearly all Bitcoin sent by mistake during a promotional event.
The operational error involved about 620,000 Bitcoin, valued at more than $40 billion. The incident caused short-term price disruption on the platform but was quickly contained.
Promotion Error Caused Unintended Bitcoin Distribution
The incident occurred on February 6, 2026, during a promotional campaign run by Bithumb.
The event, known as a “Random Box,” was designed to reward selected users with small cash payouts. Each eligible user was meant to receive 2,000 Korean won.
Due to an internal input error, rewards were entered in Bitcoin instead of Korean won. As a result, users received Bitcoin balances instead of cash credits.
Each affected account received at least 2,000 Bitcoin.
A total of 695 user accounts were impacted by the mistake. The combined amount distributed reached approximately 620,000 Bitcoin.
The exchange identified the error shortly after distribution began and began internal checks.
Bithumb later confirmed that the mistake occurred during the reward configuration stage. The company said staff entered incorrect units while processing the campaign. The error was not detected before the distribution went live.
Recovery Actions and Official Exchange Response
Bithumb said it restricted trading and withdrawals on affected accounts within 35 minutes. This step was taken to prevent further movement of the funds. The exchange then initiated direct recovery procedures.
According to Bithumb, 618,212 Bitcoins were recovered from user accounts. This represents about 99.7% of the mistakenly sent funds. Only 125 Bitcoin remains unrecovered at the time of reporting.
Some users sold Bitcoin before restrictions were applied. About 1,788 Bitcoins were sold during this period. The exchange said it recovered 93% of those sold assets through follow-up actions.
In a public statement, Bithumb apologized for the incident. It said, “We sincerely apologise for the inconvenience caused during this promotional event.”
The exchange added that it will cover remaining losses using its own assets.
Related Reading: Bithumb Accidentally Sends 2,000 BTC-Users Instantly Dump the Market
Market Reaction and Regulatory Review
The mistaken distribution triggered heavy selling activity on the Bithumb platform.
Some recipients attempted to liquidate their unexpected Bitcoin balances. This led to a brief flash crash limited to the exchange.
Bithumb said trading conditions stabilized within minutes after controls were applied. The exchange confirmed the issue was not linked to hacking or security failures.
It stated that customer asset management systems remained intact. South Korean financial authorities have begun reviewing the incident.
The review follows ongoing oversight of crypto exchange operations. Regulators are examining whether internal controls were sufficient.
Bithumb is South Korea’s second largest crypto exchange, behind Upbit. The exchange said it is reviewing internal procedures to avoid similar errors. It also said cooperation with regulators will continue.
Source: https://www.livebitcoinnews.com/bithumb-recovers-40b-in-bitcoin-after-historic-airdrop-mistake/
