Bithumb’s accidental $44 billion Bitcoin giveaway highlights the risks of operational errors in crypto exchanges and the fragility of market confidence.
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| Bithumb recovered most of the mistakenly distributed bitcoins, but the incident exposed how quickly errors can destabilize crypto markets and customer trust. Image: CH |
Tech Desk — February 7, 2026:
South Korea’s Bithumb exchange found itself at the center of a dramatic crypto blunder after mistakenly distributing more than $40 billion worth of Bitcoin to customers during a promotional event—an error that briefly sent Bitcoin prices plunging and highlighted the operational fragility of even major cryptocurrency platforms.
The incident occurred on Friday when Bithumb intended to reward users with small cash bonuses—2,000 Korean won (about $1.37) or more—through a promotional giveaway. Instead, winners received at least 2,000 bitcoins each, a mistake that inflated the total distributed amount to roughly 620,000 bitcoins, worth about $44 billion at current market prices.
Bithumb moved quickly to contain the fallout, restricting trading and withdrawals for the 695 affected customers within 35 minutes of the erroneous distribution. The exchange said it had recovered 99.7% of the misdirected bitcoins, a recovery rate that suggests either rapid internal controls or customer cooperation, or both. Still, the episode underlined how easily operational errors can snowball into market-moving events in the crypto world.
The mistake triggered a sharp selloff on Bithumb, with Bitcoin prices plunging as much as 17% to 81.1 million won before recovering to around 104.5 million won. The extreme volatility reflects how sensitive crypto markets are to sudden changes in supply, even when the excess coins are not actually entering the broader market.
Bithumb was quick to emphasize that the incident was not the result of hacking or security breaches. In its statement, the exchange insisted that there were no systemic security issues and that customer assets were not compromised. But even with those reassurances, the episode exposes a deeper vulnerability: the reliance on automated systems and the potential for human or technical error to trigger catastrophic outcomes.
The incident is also a stark reminder of the reputational risks faced by exchanges in a sector where trust is already fragile. Bithumb, which trails Upbit as a leading player in South Korea’s crypto market, now faces the challenge of restoring confidence among users and regulators alike. Even if the financial damage is contained, the episode could influence user behavior and regulatory scrutiny, especially in a jurisdiction where crypto oversight has been intensifying.
More broadly, the episode highlights the speed at which crypto markets react to operational disruptions. Unlike traditional finance, where errors are often managed through established recovery protocols and back-office systems, crypto markets can price in perceived supply shocks almost instantly. The brief 17% price slump demonstrates how quickly traders react to uncertainty, even when the underlying issue is a technical mistake rather than a fundamental shift in demand.
For now, Bithumb’s recovery of nearly all the mistakenly distributed Bitcoin limits the immediate financial impact. But the incident is likely to fuel broader debate over exchange reliability, governance, and the need for stronger safeguards—especially as the crypto industry continues to scale and integrate deeper into mainstream finance.