In an extraordinary mishap, South Korea’s cryptocurrency exchange Bithumb accidentally distributed over $40 billion worth of bitcoins to customers during a promotional event on 7 February 2026.
The error, which occurred when the platform intended to send small cash rewards of around $1.40 each, instead credited winners with at least 2,000 bitcoins each, triggering a brief but sharp market selloff.
Bithumb swiftly restricted trading and withdrawals for the 695 affected accounts, recovering 99.7% of the 620,000 bitcoins within 35 minutes.
The exchange clarified that the incident was not due to hacking or security breaches and affirmed the integrity of its systems and customer asset management. Despite this, bitcoin prices on Bithumb briefly plunged 17% before rebounding.
South Korean regulators, including the Financial Services Commission, described the incident as exposing vulnerabilities in the virtual asset sector. They announced plans for on-site inspections of Bithumb and other exchanges to review internal controls and operations. The event serves as a cautionary tale of the risks inherent in cryptocurrency platforms and their promotional mechanisms.
