Bithumb, South Korea’s second-largest cryptocurrency exchange, is seeking a court injunction to freeze seven Bitcoins—worth approximately $8 million—that have yet to be returned following a payment mishap in February. The legal standoff has escalated tensions between the exchange and a small group of users who have refused to return the mistakenly credited funds, despite repeated requests for restitution in the months since the incident.
Details of the payment error
The situation unfolded on February 6 during a promotional campaign run by Bithumb. The company had planned to award 620,000 won (about $460) to each of 249 winners. However, due to a clerical mistake, staff selected the “BTC” option instead of the intended Korean won, resulting in each winner erroneously receiving a balance of 620,000 Bitcoin in the exchange’s internal system. In just a few minutes, a total exceeding $40 billion in digital assets appeared on users’ accounts within Bithumb’s own internal ledgers, dramatically skewing internal balances.
A number of users acted swiftly once they noticed the error, moving to sell roughly 1,788 Bitcoins before the mistake was detected. In response, Bithumb temporarily froze affected accounts, and the price of Bitcoin against the Korean won dropped to nearly 80 million won as chaos ensued within the market pair.
The exchange managed to reverse many of the incorrect transactions and recover most of the coins that had been sold. Nevertheless, a portion valued at approximately 12.3 billion won (roughly $8.3 million) remained outstanding. Despite ongoing communication efforts, as of now, seven Bitcoins have still not been returned to Bithumb.
Legal actions and possible implications
To prevent the disputed assets from being moved further, Bithumb filed for a provisional seizure order with the courts. Under South Korean law, such precautionary measures are often granted to stop a debtor from concealing or transferring assets ahead of potential litigation. It is anticipated that the exchange will pursue a full civil case if the Bitcoins continue to go unreturned.
Local legal experts note that cases like this typically fall under the principle of “unjust enrichment,” requiring recipients to restore mistakenly received assets to their rightful owner. If the digital currencies have already been sold, affected users may be compelled to buy back the equivalent amount at current market rates in order to make restitution, according to legal interpretations.
This incident serves as a stark reminder of how a moment’s oversight, combined with the irreversible and rapid nature of blockchain transactions, can spark a crisis worth millions of dollars in mere minutes—even in highly regulated financial environments.
Bithumb holds the position as South Korea’s second-largest cryptocurrency exchange after Upbit, with a recent 24-hour trading volume of $388 million. As a leading player in the country’s digital asset sector, Bithumb’s experience in this matter highlights how system glitches and human error can ripple throughout the crypto ecosystem, with far-reaching effects on both users and trading platforms.
Bithumb has shown that even established exchanges are not immune to technical or human mistakes, and the consequences can be significant for both platforms and investors, according to industry observers.
The dispute has also reignited discussions about the need for improved safeguards, internal controls, and rapid response protocols for asset management in the rapidly evolving world of crypto trading. Experts argue that crypto exchanges must develop more robust systems to prevent, detect, and contain such incidents before they escalate into financial and legal battles.
As Bithumb proceeds with its legal efforts, the outcome could set a precedent for how similar disputes are handled in the future—not only in South Korea but also across other jurisdictions with active crypto markets. Many in the sector are watching closely to see whether courts will uphold the exchange’s right to reclaim lost assets under claims of unjust enrichment.
For users, the event serves as a cautionary tale about acting on windfalls resulting from technical errors, as authorities are likely to intervene to ensure the integrity of financial systems. Crypto enthusiasts are reminded once again that, despite the decentralized promise of blockchain, centralized exchanges still play a critical role—and errors within these systems can carry significant personal and legal responsibilities.
