South Korean cryptocurrency exchange Bithumb has launched legal action to recover millions in misallocated funds following a technical error that distributed 620,000 Bitcoin (BTC) instead of cash rewards to 249 users during a February promotion. The exchange recovered most assets within minutes, but some recipients converted or sold the cryptocurrency before the reversal.

Bithumb has filed for provisional seizure of approximately 7 BTC (worth around $700,000 at the time of the incident) against users who refused voluntary repayment. Industry sources indicate some recipients claim the exchange's operational error absolves them of restitution obligations.

The incident underscores persistent operational risks in digital asset platforms as regulators increase scrutiny of custody controls. Bithumb's aggressive legal response signals exchanges' diminishing tolerance for windfall retention resulting from technical failures.