Sat Feb 07 09:47:50 UTC 2026: # Bithumb Erroneously Distributes $40 Billion in Bitcoin, Recovers Majority

The Story:

South Korean cryptocurrency exchange Bithumb mistakenly distributed over $40 billion worth of Bitcoin to its customers as part of a promotional reward program on Friday, February 6, 2026. The error triggered a significant selloff on the exchange. Bithumb issued an apology and reported that it had recovered 99.7% of the erroneously distributed 620,000 Bitcoins, valued at approximately $44 billion. The exchange swiftly restricted trading and withdrawals for the 695 affected customers within 35 minutes of the incident.

Key Points:

  • Bithumb accidentally gave away over $40 billion in Bitcoin as promotional rewards.
  • The error occurred on Friday, February 6, 2026.
  • 620,000 Bitcoins were mistakenly distributed, worth about $44 billion.
  • 99.7% of the Bitcoins were recovered.
  • Bitcoin price briefly slumped 17% on Bithumb before recovering.
  • Bithumb claims the incident was not related to hacking or security breaches.
  • The intended reward was around 2,000 Korean won ($1.37), but winners received at least 2,000 Bitcoins.

Key Takeaways:

  • Even established cryptocurrency exchanges are susceptible to operational errors with major financial consequences.
  • Rapid response mechanisms, such as restricting trading and withdrawals, are crucial for mitigating the impact of such errors.
  • The incident highlights the volatility of the cryptocurrency market, as evidenced by the sharp price slump and subsequent recovery.
  • Transparency and communication are vital in maintaining user trust following such incidents.
  • The concentration of cryptocurrency trading on a few major exchanges like Bithumb and Upbit raises systemic risk concerns.

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