Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The exchange that mistakenly distributed bitcoins has filed a lawsuit against the recipients of the coins., 2026/04/09 13:01:59
The second-largest cryptocurrency exchange in South Korea, Bithumb, has initiated legal proceedings in an effort to reclaim bitcoins that were mistakenly distributed to users during a promotional event in February.
The exchange has petitioned the court to impose a freeze on the accounts of clients who still hold the erroneously received BTC. In total, these wallets contain 7 BTC valued at $496,000. Bithumb is requesting the court to seize the assets immediately for the duration of the legal proceedings. The exchange plans to file both civil and criminal lawsuits against the recipients.
On February 6, the exchange inadvertently distributed 620,000 BTC worth $43 billion among hundreds of users. The error occurred when an employee confused the unit of reward, mistakenly indicating BTC instead of KRW. As a result of the incident, the bitcoin/Korean won pair’s rate on the platform dropped by 15%, leading to financial losses.
Related Posts
Most of the recipients of the mistakenly credited funds eventually returned the bitcoins to the exchange voluntarily. However, some did not comply. Reports indicated that at least some recipients claimed they were not obligated to return the cryptocurrency that was credited due to the oversight of the exchange’s staff.
The incident triggered a series of inspections of cryptocurrency exchanges in South Korea, including Bithumb itself. The country’s main financial regulator, the Financial Intelligence Unit (FIU), suspected the exchange of having weak internal control mechanisms and risk management, and later even a lack of liquidity. Authorities found it suspicious that Bithumb was able to create and execute transactions with enormous nonexistent bitcoin balances: during the incident, 620,000 BTC were moved, while the exchange reported having only about 46,000 BTC at that time.
As a result of the FIU’s investigation, Bithumb was accused of 6.65 million violations of money laundering laws and was fined $24.6 million. The exchange’s operations were also restricted for six months.
Shortly after the incident, the ruling Democratic Party of South Korea proposed a bill that limits individual ownership stakes in cryptocurrency exchanges to 15-20%. This means that no investor can hold a stake in the exchange exceeding the specified limit.
The incident also impacted Bithumb’s plans: the company announced a postponement of its IPO until 2028. Nevertheless, the exchange was able to extend the term of CEO Lee Jae-won’s tenure despite pressure from regulatory authorities.
