Bithumb Recovers 620,000 BTC Error: Legal Battle Sends Shockwaves Through Crypto Markets

Bithumb's accidental transfer of 620,000 BTC to customers turned into a $40 billion financial disaster, and two court rulings have brought the incident back into the spotlight.

Incident: The Rapid Fall of 620,000 BTC

On February 6, 2026, Bithumb mistakenly credited customers with 620,000 BTC instead of Korean Won during a promotional event, valuing the amount at roughly $40 billion at the time.

Court Rulings: $140 000 Claims

■Decision on a 194 million KRW (about $140 000) claim

■Decision on a 5 million KRW (about $3 600) claim

■Pending claims of 14.8 million KRW (about $10 700) and 500 million KRW (about $362 000)

Recovery: 99.7% of the Loss

Bithumb reclaimed 618,212 BTC (approximately $40 billion). However, 1,788 BTC had already been sold, resulting in a loss of about $1.2 million.

Regulatory Pressure: FSS and FSC Footprints

■Financial Supervisory Service (FSS) investigated the error and issued an inspection report

■Financial Services Commission (FSC) has yet to respond

■Bithumb faces a six‑month partial business suspension for Anti‑Money Laundering violations

Market Reactions: Cautious Optimism Amid Crypto Dip

■Bitcoin prices dipped 2% shortly after the 620,000 BTC mishap

■Other crypto assets, such as USDT and ETH, raised concerns over stability

■Investors are re‑examining ETF flows and institutional fund movements

Solutions: Transparency and Restructuring

■Bithumb locked customer accounts to trace sold BTC

■The company overhauled its digital asset management system, adding automatic error detection

■New regulatory audit protocols are expected to be implemented

Bithumb’s massive error serves as a stark reminder of risk management and regulatory compliance in the crypto ecosystem. The swift recovery rate preserves market confidence to some extent, while court proceedings and regulatory scrutiny may act as catalysts to raise transparency and accountability standards across the sector.