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Bithumb Exchange’s $44B Bitcoin Payout Error Sparks 17% Flash Crash

Bithumb Exchange’s $44B Bitcoin Payout Error Sparks 17% Flash Crash

Author:

Global Cryptocurrency

Published:

2026-02-07 09:04:07

20

2

Bithumb exchange News -

South Korea's Bithumb exchange mistakenly credited users with 2,000 BTC each during a promotional event intended to distribute $1.40 cash prizes. The administrative error created a $44 billion liability and triggered immediate sell pressure.

Bitcoin prices on Bithumb plunged 17% to $55,000 within minutes as recipients liquidated the windfall. The flash crash created a rare inverse Kimchi premium, with Bithumb's BTC price dipping below global benchmarks holding steady near $66,000.

Exchange security protocols froze 695 affected accounts within five minutes and suspended withdrawals. Bithumb recovered 99.7% of the misallocated bitcoin within 24 hours, preventing catastrophic losses.

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