On February 6, 2026, South Korean exchange Bithumb made an operational error during a promotional event that was scheduled to distribute small rewards in Korean Won (KRW). Instead, it accidentally sent Bitcoin (BTC) to users, leading to a regulatory investigation.
This is suspected to be due to human error in which an employee incorrectly entered the payment unit as “BTC” instead of “KRW”. The system incorrectly distributed approximately 620,000 BTC to your user account. The platform planned to offer rewards ranging from 2,000 to 50,000 won (equivalent to about $1.40) per user.
It is worth clarifying that 620,000 BTC is a much larger number than the 46,000 BTC that the exchange held, as seen in the Arcam graph below.
Mr. Bithumb detected an abnormality, and 35 minutes after the incident occurred, operations on related accounts and deposits and withdrawals were restricted, and erroneous balances began to be restored. CriptoNoticias reported that the incident was not related to a cyberattack and did not affect the security of its customers’ systems or assets.
The ruling created immediate selling pressure in Bithumb’s internal market. The BTC price on the platform fell to 81 million won (approximately $55,000), a drop of about 16% compared to the global level, which stood at $60,000 at the time.
Fund recovery and exchange support
Bithumb later reported that it had recovered 99.7% of the erroneously distributed BTC using internal controls and in some cases working with other players in the space.
The company promised to compensate users who were harmed by the discounted sales. Announces measures to strengthen verification protocols and controls With an automated reward distribution process.
Binance founder Changpeng Chao commented on the incident and acknowledged that his platform helped recover some of the funds.
“I didn’t post anything at the time to avoid causing FUD (fear, uncertainty and doubt),” he explained. Zhao recommended introducing strict peak value checks in reward distribution functions and real-time audits to avoid similar mistakes in the industry.
Regulatory intervention and increased supervision
The case quickly attracted the attention of the Korean Financial Supervisory Service (FSS). Regulators have launched a special investigation into Bithumb Identify causes of failure, assess internal controls, and verify potential regulatory violations.
In parallel, the SSF is expanding its surveillance beyond the Bithumb investigation to include high-risk activities in the crypto asset sector, such as price manipulation and other market-distorting activities. Within this strategy, regulators will investigate the movements of Bitcoin whales (entities with more than 1,000 BTC in their wallets). Large volumes of trades can have a significant impact on prices and exacerbate volatility, especially in mass liquidation or system error scenarios.
Additionally, the agency is developing stricter regulations to reduce computer and operational vulnerabilities. These include tougher penalties for technical failures and increased liability for managers regarding cybersecurity and internal controls.
Updated February 9, 2026: It was revealed that the platform had deposited more BTC into user accounts than they actually owned.