South Korea’s cryptocurrency exchange Bithumb has secured victories in two initial court rulings related to its efforts to recover Bitcoin that was mistakenly transferred to customer accounts earlier this year.
Court sides with Bithumb in Bitcoin recovery lawsuits
The Seoul Central District Court ruled in favor of Bithumb on two separate days this week in lawsuits against users who sold Bitcoin mistakenly credited to their accounts. The rulings covered claims for 194 million won ($140,000) and 5 million won ($3,600), respectively. Both cases proceeded by public notice, since court documents could not be delivered to the defendants through routine channels.
Two additional lawsuits brought by Bithumb, seeking 14.8 million won ($10,700) and 500 million won ($362,000), remain pending. The exchange continues its legal battle to reclaim the lost assets from the high-profile incident that has drawn regulatory and public scrutiny.
During hearings, Seoul Central District Court confirmed Bithumb’s claim to recover the misappropriated funds after the accidental crediting, supporting the exchange’s pursuit of users who sold the mistakenly distributed Bitcoin.
Accidental Bitcoin distribution traced to employee error
The incident occurred during a promotional event on February 6, 2026, when Bithumb had aimed to distribute 620,000 won (about $420) in rewards to 249 users. However, due to an employee’s error in selecting the payment unit, 620,000 BTC—exceeding $40 billion at the time—was credited to customer accounts instead of the intended Korean won.
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AAPLBithumb reported that it recovered 618,212 BTC, representing 99.7% of the total mistakenly credited Bitcoin. The exchange disclosed, however, that some users managed to sell 1,788 BTC from the credited amounts before Bithumb froze the impacted accounts. In March, Bithumb launched four unjust enrichment lawsuits targeting individuals who sold the Bitcoin and failed to return the proceeds. The exchange has been seeking repayment in Korean won, not the original Bitcoin amounts.
| Claim Amount (won) | Claim Amount (USD) | Status |
|---|---|---|
| 194,000,000 | $140,000 | Ruled for Bithumb |
| 5,000,000 | $3,600 | Ruled for Bithumb |
| 14,800,000 | $10,700 | Pending |
| 500,000,000 | $362,000 | Pending |
Mini dictionary: Unjust enrichment, a legal term referring to situations where one party benefits financially at another’s expense in circumstances the law sees as unjust. It often forms the basis for claims to recover such ill-gotten gains.
Regulatory scrutiny and ongoing investigations
The incident attracted the attention of South Korea’s Financial Supervisory Service (FSS), a government agency overseeing financial institutions. The FSS initiated an investigation into how Bithumb was able to credit users with Bitcoin it did not possess, eventually starting formal sanctions proceedings in August. However, no final regulatory penalty has yet been announced.
The Financial Services Commission (FSC), which supervises the FSS, has not issued updates on the status of potential sanctions or the investigation’s outcome. As of now, the aftermath of the mistaken distribution remains under the regulator’s review.
Mini dictionary: Bithumb is a major South Korean cryptocurrency exchange known for handling high trading volumes and serving a broad retail and institutional customer base.
Bithumb faces additional legal challenges
In June, Bithumb was also raided by South Korean police as part of an unrelated hiring investigation involving lawmaker Kim Byung-ki. Separately, the exchange is contesting a six-month partial business suspension tied to alleged Anti-Money Laundering violations. A Seoul court placed a stay on enforcing this suspension in April, pending a final decision on Bithumb’s legal challenge.
These developments highlight continued legal and regulatory pressure on Bithumb, even as it addresses internal control systems and prepares for a potential public listing in 2028.
