Bithumb $44B Bitcoin Glitch: 620,000 BTC Error Probed

Exchange error distributes 620,000 bitcoin to users

Bithumb, a South Korean cryptocurrency exchange, mistakenly credited 620,000 bitcoin worth approximately $44 billion to 695 user accounts on 6 February 2026. The error occurred when an employee input a payout amount as bitcoin rather than South Korean won, the country's national currency. The exchange halted trading and withdrawals within 35 minutes of the incident. Bithumb recovered 99.7% of the misallocated bitcoin during this period.

Platform price dropped 17% before controls activated

Bitcoin prices on Bithumb's platform fell as much as 17% following the distribution error. The price briefly touched 81 million won ($55,000) on Bithumb while global markets maintained prices above $66,000. Trading restrictions on the 695 affected customer accounts restored price stability. The exchange retrieved 618,212 of the 620,000 distributed bitcoin, resulting in the 99.7% recovery rate.

"We will carry out planned investigations into high-risk areas including cryptocurrency price manipulation and fraudulent trading involving the spread of false information", 08 February 2026. — Lee Chan-jin, Governor, Financial Supervisory Service (FSS)

Regulator opens investigation into ghost coins

South Korea's Financial Supervisory Service (FSS) formed a task force to investigate the incident and broader industry practices. FSS Governor Lee Chan-jin indicated regulators could order on-site inspections of exchanges. The Financial Services Commission, South Korea's financial regulator, held an emergency meeting and stated the error exposed vulnerabilities in virtual asset systems. The commission referenced concerns about "ghost coins", digital assets that appear in user accounts without corresponding reserves backing them.

Exchange confirms no external security breach

Bithumb issued a statement clarifying the incident resulted from internal operational error rather than external hacking or security breaches. The exchange stated system security and customer asset management remain intact. The error affected only the 695 accounts that received the incorrect bitcoin credits. Bithumb has not disclosed what happened to the remaining 0.3% of misallocated bitcoin that was not recovered.