Bithumb Exchange’s Bitcoin Deposit Error Sparks Market Turmoil and Price Plunge
South Korean cryptocurrency exchange Bithumb inadvertently distributed Bitcoin instead of Korean won during a promotional event, triggering a sharp price decline. The exchange had intended to award participants with amounts between 20,000 and 50,000 won through its 'Random Box' initiative. Instead, some users received up to 2,000 BTC—worth billions of won—leading to immediate sell-offs.
The erroneous deposits, made around 6 p.m. local time, precipitated a 10% drop in Bitcoin's price on Bithumb relative to global markets. Exchange reserves dwindled to approximately 46,000 BTC as users liquidated their unexpected windfalls. Bithumb swiftly suspended transactions to mitigate further volatility.
This incident coincided with broader market weakness, exacerbating downward pressure on cryptocurrency prices. The exchange's operational misstep highlights the fragility of digital asset markets when technical errors intersect with trader behavior.
