South Korean crypto exchange Bithumb is pursuing legal action to recover 7 Bitcoin that remain unreturned following a massive payout error. The exchange mistakenly distributed 620,000 Bitcoin during a February promotion. Bithumb has filed for a provisional attachment, a court-ordered asset freeze, targeting users who have not returned the erroneously distributed funds.
The error occurred when the exchange intended to send 620,000 won ($420) but instead distributed 620,000 Bitcoin, briefly valued at $42 billion. While transactions were reversed within minutes, some funds had already moved. Bithumb initially recovered 99.7% of the mistaken transfers, covering the remaining shortfall from company reserves.
Despite efforts to contact users individually, a small number have refused to return the remaining Bitcoin, arguing they are not liable for the exchange's error. South Korean law typically classifies such mistaken receipts as unjust enrichment, requiring their return.
In response to the incident, South Korea’s Financial Services Commission has mandated all crypto exchanges to reconcile internal ledgers with asset holdings every five minutes to ensure timely detection of discrepancies.