South Korean cryptocurrency exchange Bithumb has initiated legal proceedings to recover approximately $500,000 in Bitcoin (BTC) that remains unreturned after a $40 billion payout error in February. The exchange accidentally distributed 620,000 BTC to 249 users due to a "fat-finger" mistake during a promotional event.

While Bithumb swiftly canceled the erroneous transactions and reclaimed most of the assets, a small fraction—about 0.3%—was sold or exchanged by users before recovery. The exchange has now filed for provisional seizure to freeze the unrecovered 7 BTC, a legal maneuver to prevent further dissipation of the assets ahead of formal litigation.

Legal experts suggest Bithumb has a strong case, as recipients of the mistaken payout lack legitimate claim to the funds. The incident underscores the operational risks inherent in crypto exchanges and the legal frameworks evolving to address them.