Bithumb’s Bitcoin Blunder: A $40‑billion Slip and the Promise of Refunds

A South Korean crypto platform, Bithumb, accidentally sent out more than $40 billion worth of Bitcoin instead of a modest reward in local currency. The mistake happened during a promotion that was meant to give 620, 000 won (about $424) to each winner. An employee mistakenly entered Bitcoin as the currency type, and the system distributed 620, 000 Bitcoin to 695 users at 7 p. m. local time on Friday. The error was caught within roughly twenty minutes, but by then a brief sell‑off had already triggered panic sales on the exchange. Many users sold their newly received Bitcoin quickly, which caused a sharp drop in prices and led to significant losses for those who sold.Bithumb has now announced that it will reimburse customers who suffered from the sudden drop. The company says it will pay back those who lost money when they sold their holdings in the rush that followed the glitch. The reimbursement plan aims to cover losses from the brief but sharp sell‑off caused by the error. The incident highlights how a single input mistake can cascade into huge financial consequences in the crypto world. It also shows that exchanges need robust checks to prevent such errors, especially when dealing with large sums and volatile assets. The company’s decision to refund users is a step toward restoring trust, but it also raises questions about how crypto platforms handle mistakes and protect their customers in a market that is still largely unregulated.