Bithumb’s Bitcoin Blunder: A $44 Billion Slip‑Up

Bithumb, a major South Korean crypto exchange, mistakenly sent out more than 620, 000 Bitcoins during a promotional giveaway. The company intended to reward users with small cash bonuses of about 1. 40 US dollars each, but the system miscalculated and distributed at least 2, 000 Bitcoins per winner. The error triggered a sharp sell‑off in the market and caused Bitcoin prices on Bithumb to dip briefly before rebounding. Within 35 minutes of discovering the mistake, Bithumb halted trading and withdrawals for the 695 affected customers. The exchange has since recovered roughly 99. 7 percent of the mistakenly sent coins, a value close to $44 billion. Bithumb clarified that no external hacking or security breach was involved and that its asset‑management systems remain secure.South Korean regulators, including the Financial Services Commission, have taken notice. They plan to scrutinize Bithumb’s internal controls and other exchanges for potential weaknesses in virtual‑asset management. The incident highlights how operational errors can shake confidence in the rapidly growing crypto market. The fallout may prompt tighter oversight of digital‑asset platforms. Regulators could introduce stricter rules to prevent similar mishaps and protect investors. Bithumb, which lags behind the market leader Upbit, faces increased pressure to strengthen its safeguards and avoid future costly mistakes. This episode serves as a reminder that even small technical glitches can have massive financial consequences. Robust internal controls, clear communication, and vigilant regulatory monitoring are essential to maintain trust in cryptocurrency exchanges.