Bithumb Accidentally Distributes $44 Billion in Bitcoin, Causing Market Disruption

Technology

Bithumb Accidentally Distributes $44 Billion in Bitcoin, Causing Market Disruption

1 hour ago

News sources:

REUTERS

SCMP

CHANNELNEWSASIA

Bithumb Accidentally Distributes $44 Billion in Bitcoin, Causing Market Disruption

Credited from: REUTERS

Bithumb accidentally distributed over $40 billion in Bitcoin to customers
The exchange retrieved 99.7% of the erroneous distribution
Bitcoin prices fell by 17% following the incident

South Korean cryptocurrency exchange Bithumb announced on Saturday that it had mistakenly distributed more than $40 billion worth of bitcoins to its users as part of a promotional event. This blunder resulted in significant market turmoil and a sharp selloff on the exchange, as many customers received approximately 2,000 bitcoins each, despite the intended promotional rewards being much smaller at 2,000 Korean won (around $1.37) each, according to Reuters, SCMP, and Channel News Asia.

Bithumb took swift action to manage the fallout, stating it had recovered 99.7% of the distributed bitcoins within a matter of hours and restricted trading and withdrawals for the 695 affected customers. The company clarified that this incident was not related to any hacking or security breaches, ensuring users of the integrity of their asset management systems, according to Reuters, SCMP, and Channel News Asia.

Following the incident, Bitcoin prices dropped by approximately 17%, reaching 81.1 million won (around $67,900) before rebounding to 104.5 million won (around $88,800). This volatility reflects the significant impact of the Bithumb blunder on the cryptocurrency market, which has been under pressure recently due to broader economic conditions, as reported by Reuters and Channel News Asia.