Bithumb Confirms Payment Error After Abnormal Bitcoin Transactions – A $44 Billion Near-Collapse
- How Did a $1.50 Promotion Turn Into a $44 Billion Disaster?
- Why Did Bithumb’s Damage Control Still Leave 0.3% at Large?
- Is This the Crypto Industry’s "Lehman Moment"?
- Can Bitcoin’s Reputation Survive Another Exchange Debacle?
- FAQs: Your Burning Questions Answered
In a jaw-dropping blunder, South Korea’s Bithumb accidentally distributed 620,000 BTC (worth $44 billion) due to a decimal error during a promotional campaign. The exchange swiftly froze accounts within 35 minutes, recovering 99.7% of funds, but not before triggering a 17% flash crash on its platform. This incident—coming just months after the October 2025 exchange-wide meltdown—has reignited concerns about systemic vulnerabilities in crypto markets. Here’s how one typo nearly capsized Bitcoin’s credibility.
How Did a $1.50 Promotion Turn Into a $44 Billion Disaster?
On February 6, 2026, Bithumb intended to distribute modest $1.50 rewards to select users. Instead, a fat-finger error credited 695 customers with—equivalent to roughly $68 million per account at the time. "This wasn’t a hack, just pure human error," admitted a Bithumb spokesperson. Crypto trader Scott Melker sounded the alarm on X:Data from TradingView shows the localized crash didn’t immediately spill into global markets, but the psychological damage was done.
Why Did Bithumb’s Damage Control Still Leave 0.3% at Large?
The exchange’s emergency protocols kicked in impressively fast—account freezes within 35 minutes, 99.7% funds recovered. But that remaining 0.3%? Approximatelyvanished into the wild. "Some recipients immediately offloaded coins to private wallets or decentralized exchanges," explains BTCC analyst Mark Chen. "You can’t un-ring that bell." While Bithumb claims no client assets were compromised, the incident exposes terrifying gaps in financial controls at a top-10 exchange.
| Metric | Detail |
|---|---|
| Total Erroneous Distribution | 620,000 BTC ($44B) |
| Affected Accounts | 695 |
| Recovery Rate | 99.7% |
| Current BTC Price | $68,894 (CoinMarketCap) |
Is This the Crypto Industry’s "Lehman Moment"?
The timing couldn’t be worse. October 2025 saw exchanges like Binance and Coinbase buckle under mass liquidations. Now, Bithumb’s blunder has regulators sharpening their knives. South Korea’s Financial Services Commission warned ofand is considering on-site inspections. "When exchanges fail at basic arithmetic, it calls into question their ability to safeguard billions," notes Wall Street Journal’s crypto columnist.
Can Bitcoin’s Reputation Survive Another Exchange Debacle?
Despite Bithumb’s assurances that, trust is crumbling. Coinbase recently admitted to erroneously freezing accounts, while Binance launched a $400M compensation fund post-October. "The irony? Decentralization was supposed to prevent this," quips ethereum developer Micah Zoltu. With Bitcoin already in a bearish trend (per CryptoQuant data), this fiasco adds fundamental weight to technical sell signals.
FAQs: Your Burning Questions Answered
Could Bithumb legally reclaim the 0.3% unrecovered BTC?
Likely no—Korean law lacks clear provisions for clawing back crypto sent to private wallets. Some recipients may face moral pressure to return funds.
Did this affect Bitcoin’s global price?
Minimally. The crash was mostly contained to Bithumb’s order books, though it briefly widened spreads on BTCC and other Asian exchanges.
How often do such errors occur?
Surprisingly common. In 2023, Crypto.com accidentally sent $10.5M to a user instead of $100. Most incidents involve smaller sums and quieter resolutions.
