Key Takeaways:
- Bithumb mistakenly sent 620,000 BTC on Feb. 6, 2026, creating a massive $44 billion clerical error.
- The error prompted an FSS inspection of Bithumb to tighten virtual asset protection laws and control rules.
- Bithumb filed for a provisional seizure of assets to recover 7 BTC currently worth over $472,500 in 2026.
Costly Clerical Error
South Korean cryptocurrency exchange Bithumb has reportedly initiated legal proceedings to recover remaining funds mistakenly sent to participants in a promotional event. According to a local report, the exchange is seeking a provisional seizure of assets belonging to users mistakenly credited with bitcoin.
The incident, which occurred Feb. 6, was the result of a clerical error during a promotional event. Bithumb intended to distribute a total of $418,500 (620 million won) to 249 winners. Instead of entering the amount in Korean won, an employee mistakenly designated the payout in bitcoin, resulting in the distribution of 620,000 BTC.
Following the incident, South Korea’s Financial Supervisory Service (FSS) initiated an inspection of Bithumb’s internal systems to determine whether the exchange breached the country’s virtual asset protection laws. The probe is being used as a policy-shaping exercise, with regulators signaling that findings could directly influence the drafting of South Korea’s second-stage virtual asset legislation. Officials said the review would likely inform stricter rules on ownership structures, shareholder control, and governance standards.
While Bithumb managed to cancel the majority of the transactions within minutes, several users moved quickly to sell the coins or convert them to other assets. This left an unrecovered balance of approximately $8.3 million (12.3 billion won).
The crypto exchange is now focusing on recovering the final seven BTC still held by a handful of customers. At the time of the error, these seven coins were worth roughly $472,500. The exchange has filed for provisional attachment, a court-sanctioned measure that freezes a debtor’s assets to prevent them from being moved or hidden before a formal lawsuit begins.
“Some customers are refusing to return the funds, arguing that the error was the company’s mistake and therefore the money is theirs to keep,” an industry official noted.
Legal experts warn that defiant customers are likely to lose in court under the principle of “unjust enrichment.” Lee Chan-jin, a Financial Supervisory Service official and former lawyer, previously warned that those who converted the bitcoin to cash are now “entangled in a disaster,” as the soaring market price has significantly increased their liability.
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