Bithumb Recovers 99.7% of Mistaken BTC Distribution
- Bithumb recovered 99.7% of 620,000 BTC mistakenly distributed.
- Incident led to rapid security measures by the exchange.
- South Korean authorities to inspect Bithumb’s recovery process.
On February 6, 2026, Bithumb, a South Korean cryptocurrency exchange, mistakenly distributed 620,000 BTC during a reward event, recovering 99.7% within 35 minutes.
The incident raises questions about operational security in crypto exchanges, with market reactions leading to a brief BTC price drop, highlighting potential volatility and resource management concerns.
Bithumb, a prominent South Korean cryptocurrency exchange, accidentally distributed 620,000 BTC to 695 users during a promotional event. The company quickly implemented measures, recovering 99.7% of the assets within minutes by freezing accounts.
The exchange, known for its operational robustness, froze trading and withdrawals shortly after detecting the error. Despite the mishap, Bithumb remains a leader in the crypto market, reporting a 100.46% BTC reserve ratio. As Bithumb appropriately stated, “No hacking or security breaches occurred, and any unrecovered funds would be covered by company assets.”
The incident caused a brief 10% drop in BTC/KRW prices on the platform and sparked market uncertainty. However, Bithumb’s internal controls restored order, and prices normalized quickly without causing broader market disruptions. More details can be found in an investigation underway of the incident.
Bithumb has assured users that any remaining losses from the 125 BTC not recovered will be absorbed by company assets. Despite this, transparency concerns over their BTC holdings persist among the community.
South Korean regulators have announced plans to conduct an on-site inspection at Bithumb. This review aims to examine the recovery process, aiming to prevent similar incidents and ensure compliance with financial regulations. South Korean regulators to inspect Bithumb following BTC recovery incident.
Industry experts point to this as a wake-up call for exchanges to reassess internal controls and user safeguards. Bithumb’s swift action is praised, but long-term trust depends on transparent communication and effective regulatory oversight.
