3 Minutes
Incident summary
Bithumb, one of South Korea's largest centralized cryptocurrency exchanges, says it recovered almost all of the excess Bitcoin that was mistakenly credited to some user accounts during a promotional event. The exchange confirmed it retrieved 99.7% of the overpaid Bitcoin on the same day the error occurred. The remaining 0.3% — amounting to 1,788 BTC that had already been sold in the market — was paid for from corporate reserves to ensure all user balances remained fully matched.
Bithumb stressed that customer deposits were never at risk, adding that "Bithumb's holdings of all virtual assets, including Bitcoin (BTC), are 100% equivalent to or exceeding user deposits." The platform also said the incident was not the result of a hack and that deposits and withdrawals continued as normal during the response.
Recovery method and market impact
Most of the excess Bitcoin was reclaimed directly from affected accounts. However, the portion that recipients had already liquidated required reimbursement from the company’s funds. The promotional glitch briefly triggered sharp price swings on Bithumb as some accounts began selling the unexpected credits, but the exchange says it limited affected accounts and stabilized trading within minutes, preventing a broader cascade of liquidations.
Some users estimated roughly 2,000 BTC were credited during the event, though the exchange did not disclose a precise total beyond the recovery and the 1,788 BTC shortfall figure.
Compensation and support measures
To address customer disruption and preserve trust, Bithumb announced a compensation package. Users who were connected to the platform at the time of the incident will receive 20,000 Korean won (about $15). Traders who sold Bitcoin at disadvantageous prices during the disruption will be reimbursed the full sale amount plus an extra 10% on top. Additionally, Bithumb will waive trading fees across all markets for seven days starting Monday to help affected users recover from any realized or unrealized losses.
Context: centralized exchanges and operational risk
This episode highlights ongoing operational risks at centralized crypto exchanges. Earlier examples include Coinbase, which reported that account restrictions were a major pain point and said upgrades to machine learning and infrastructure cut unnecessary freezes by 82%. During intense market moves — such as the October 10 sell-off last year — Binance users reported technical issues that temporarily prevented some traders from closing positions; Binance later paid roughly $728 million in compensation related to that event.
Bithumb’s swift recovery, corporate reimbursement of 1,788 BTC, and the compensation measures are aimed at restoring confidence among users and demonstrating that centralized exchanges must maintain robust incident response plans and adequate corporate reserves. For traders and institutional participants, the episode is a reminder to monitor exchange risk, diversify custody, and stay informed about operational policies and compensation mechanisms when trading Bitcoin and other cryptocurrencies.
Source: cointelegraph
Comments
DaNix
Nice PR, quick fix. But feels too tidy. Reimbursing sellers and waiving fees is good, yet how often do these "glitches" happen? transparency pls
coinpilot
Wait so they reclaimed 99.7% same day and paid 1,788 BTC from reserves? sounds kinda sus, why no exact total disclosed... if that's real why were accounts allowed to dump BTC like that??
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