Bithumb BTC error prompts Bank of Korea circuit breaker push

Bithumb sends 620,000 Bitcoin by mistake

South Korea's cryptocurrency exchange Bithumb credited 620,000 Bitcoin (BTC) to users on 6 February 2026. The total value reached approximately $44 billion. The error happened during a promotional event called Random Box. An employee entered "BTC" instead of "KRW" — the South Korean won — as the reward currency. The intended payout was 620,000 Korean won, equivalent to roughly $400. Bithumb cancelled 618,212 of the mistaken payments, recovering 99.7% of the credited Bitcoin.

1,788 Bitcoin sold before accounts were frozen

Before Bithumb halted trading, users sold 1,788 BTC — worth approximately $125 million, based on the Bitcoin price at the time. Bithumb treated these as valid transactions. The exchange then purchased 1,788 BTC on the open market to cover the shortfall. The company used its own reserves to fund the buyback. Separately, the error triggered forced liquidations in 64 lending accounts. According to data from crypto exchange Phemex, Bitcoin prices on Bithumb's platform dropped around 17% in minutes as users rushed to sell.

"Currently, the virtual asset industry lacks internal control mechanisms and faces lower regulatory intensity compared to established financial institutions.", April 2026. — Bank of Korea, Official Payments Report

Bank of Korea proposes mandatory trading halts

South Korea's central bank, the Bank of Korea, published a payments report in April 2026. The report proposed circuit breakers — automatic trading pauses — for cryptocurrency exchanges. Circuit breakers are mechanisms that stop trading when prices move too fast. The Bank of Korea proposed modelling these on the Korea Exchange (KRX), the country's regulated stock market, which already uses such halts.

"Consequently, as similar incidents could occur at other virtual asset exchanges, it is necessary to strengthen relevant regulations to prevent them in advance.", April 2026. — Bank of Korea, Official Payments Report

Price crash stayed within Bithumb's platform

The price drop affected Bithumb's internal trading only. Global Bitcoin spot markets did not record the same decline. The panic selling was local to Bithumb. The Bank of Korea cited this event as evidence that crypto exchanges operate with weaker internal controls than traditional financial institutions. The central bank's report called for automated IT infrastructure checks alongside the proposed circuit breaker rules.