Bithumb Exchange’s $44 Billion Decimal Error Sparks Flash Crash and Systemic Concerns
South Korea's Bithumb exchange mistakenly distributed 620,000 BTC—valued at approximately $44 billion—to 695 users due to a decimal point error during a promotional event. The platform froze the affected accounts within 35 minutes and has since recovered 99.7% of the misallocated funds.
The incident triggered a 17% flash crash on Bithumb's internal market, amplifying existing downward pressure. This follows the widespread exchange outages seen in October 2025, underscoring persistent systemic vulnerabilities within crypto trading infrastructure.
The gravity of the event was highlighted by trader Scott Melker's viral alert, emphasizing that operational risks now rival pure market risks. The episode raises critical questions about the adequacy of safeguards and stress testing at major exchanges during periods of high volatility.
