In an unprecedented digital finance mishap, a South Korean cryptocurrency exchange accidentally transferred more than $40 billion worth of Bitcoin to users during a routine promotional event, according to company statements and multiple international news reports.
The incident occurred on Friday, February 6, 2026, when Bithumb, one of South Korea’s largest crypto exchanges, attempted to distribute promotional rewards to its customers.
Instead of sending the intended amount of approximately 2,000 Korean won (about $1.40) per eligible account, a system error resulted in the distribution of 2,000 bitcoins per account, an extraordinary overpayment given the cryptocurrency’s current market value.
In total, 695 accounts received a cumulative 620,000 bitcoins, equivalent to roughly $44 billion at prevailing prices, the company said in a public statement.
The error prompted immediate concern in the digital asset market and attracted widespread global media attention.
Bithumb moved swiftly after realizing the mistake. Within 35 minutes, the exchange blocked trading and withdrawals for the affected accounts, limiting the potential for users to liquidate the erroneously credited Bitcoin.
The company confirmed that it had successfully recovered around 99.7% of the mistakenly sent funds, and assured customers and regulators that the event was not the result of a security breach or hacking.
Bithumb described the error as stemming from an internal issue during the promotional payout process.
In a statement, the exchange apologised for the disruption caused to users and the wider cryptocurrency market, emphasising that the firm would fully cover any losses arising from the incident.
The accidental payout briefly affected trading on Bithumb’s platform.
As some users attempted to sell portions of the mistakenly credited Bitcoin before restrictions were fully enforced, Bitcoin prices on the exchange dropped by nearly 17pc, falling from around 97 million Korean won per token to approximately 81 million won.
Prices subsequently rebounded after the exchange restored control over the affected accounts.
The incident highlighted the vulnerability of cryptocurrency markets to operational errors, particularly when large volumes of digital assets are involved in promotional or routine transactions.
South Korea’s Financial Services Commission (FSC) responded to the incident with concern, noting that the event exposed gaps in internal controls and risk management systems within virtual asset platforms.
Regulators convened an emergency review meeting to assess Bithumb’s operations and indicated the possibility of on-site inspections if systemic weaknesses were detected.
In addition to blocking withdrawals and recovering most of the funds, Bithumb announced a review of internal processes to prevent similar errors in the future.
The company confirmed that it is working closely with regulators and independent auditors to enhance transaction verification protocols.
The event drew worldwide attention due to its record-breaking scale, briefly becoming one of the most significant accidental cryptocurrency transfers in history.
Experts highlighted the need for exchanges to implement multi-layer verification, fail-safes, and real-time monitoring to avoid similar incidents.
Bithumb is among South Korea’s largest cryptocurrency exchanges, handling millions of users and a substantial share of daily trading volume.
South Korea is recognized as one of the world’s leading cryptocurrency markets, with widespread adoption and rigorous regulation.
The crypto sector in the country has experienced rapid growth, accompanied by regulatory oversight aimed at preventing fraud, market manipulation, and operational failures.
Bithumb has pledged to implement additional safeguards and collaborate with regulators to ensure that promotional and routine transactions do not pose systemic risks in the future.
