South Korean cryptocurrency exchange Bithumb has admitted to mistakenly distributing more than 620,000 bitcoins, valued at around 44 billion, to hundreds of customers during a promotional campaign. The error occurred on Friday when the platform intended to award small cash prizes of about 2,000 Korean won R25 but instead credited at least 2,000 bitcoins to each of 695 users. Trading and withdrawals for those accounts were frozen within 35 minutes, and the company says it has since recovered 99.7 of the coins.
The incident briefly triggered a sharp selloff on Bithumb, with bitcoin prices plunging 17 before rebounding later in the evening. Bithumb stressed that the mishap was not linked to hacking or security breaches, assuring customers that its systems remain secure. The exchange, which trails rival Upbit in South Koreas crypto market, has apologised for the disruption.
For South African investors, the episode highlights the risks of trading on global exchanges where technical errors can have outsized effects on market stability. Bitcoin remains volatile, and such incidents reinforce the importance of caution when engaging in digital asset trading.
