TLDR

  • During a reward event, Bithumb accidentally distributed 620,000 BTC to 695 users.
  • Due to the sudden sell – offs of mis – sent BTC, the Bitcoin price on Bithumb dropped to $55K.
  • The exchange managed to recover 99.7% of the BTC and used its own funds to cover the remaining part.
  • Users who sold at lower prices will be compensated and given a 10% bonus.
  • South Korea’s FSC is conducting an emergency inspection to investigate the airdrop error.

South Korean crypto exchange Bithumb confirmed that it has recovered almost all of the Bitcoin that was wrongly distributed to users during a promotional event on February 6, 2026. The platform stated that the problem was caused by an internal system configuration error rather than a security breach.

The airdrop mistake briefly led to a fall in the price of Bitcoin on the exchange’s BTC/KRW pair, while global markets remained unaffected.

System Error Results in Unintended Bitcoin Transfers

According to an official from Bithumb, the issue occurred during a reward campaign where users were supposed to get 2,000 Korean won as incentives. Due to a system configuration error, the rewards were sent in Bitcoin instead.

As a consequence, 620,000 BTC were incorrectly credited to 695 users. Some users immediately sold the Bitcoin, causing the BTC/KRW price on Bithumb to plummet to around $55,000. At that time, it was trading above $66,000 on other exchanges.

Bithumb identified the issue within minutes and immediately froze the affected accounts to avoid further losses. The exchange clarified that the incident was an operational one and not related to any hacking attempt.

Rapid Recovery and Reimbursement Strategy

Bithumb stated that it was able to recover approximately 99.7% of the mis – sent Bitcoin. For the small portion that was sold before the accounts were frozen, the exchange used its own funds to restore the affected balances.

By late February 7, the company confirmed that all user balances were fully restored.

“No customer assets were lost during the incident,” the exchange noted in a public notice.

To support the affected traders, it was stated that users who sold Bitcoin at the temporarily reduced price would receive full reimbursement based on the market value. Additionally, a 10% bonus will be paid as part of the compensation.

Authorities Investigate Airdrop Mistake

The Financial Services Commission (FSC) of South Korea launched a formal review of the error. On February 7, an emergency inspection meeting was held in Seoul, chaired by FSC Vice Chairman Kwon Dae – young.

Officials from the Financial Supervisory Service and the Financial Intelligence Unit also attended. Authorities described the error as a large – scale misdelivery case and confirmed that they are closely monitoring Bithumb’s follow – up actions.

Bithumb CEO Lee Jae – won issued a public apology and outlined a clear compensation plan. He said that the company takes full responsibility and will ensure that customer trust is maintained.

Exchange Implements New Safeguards

Bithumb has formed an internal task force to strengthen its operational systems and prevent such issues from happening again. The task force is focused on improving monitoring tools, automating alerts, and enforcing stricter checks for reward – based campaigns.

The exchange also stated that it will introduce new staff training programs and upgrade its internal risk control systems.

“This event has prompted us to further tighten our internal operations,” the company said.

Trading on Bithumb has since resumed normally, and the platform emphasized that user assets are secure.