On January 6, South Korea's second largest crypto exchange accidentally sent more Bitcoin to some users. The event led to some users selling their received BTC, causing price fluctuations for the BTC/KRW pair on the exchange, which quickly normalized. Unfortunately, this incident has spawned FUD around Bithumb on X and incorrect reports of what happened. However, the crypto exchange addressed the issue, outlining the cause, the status of asset recovery and a compensation plan.
Bithumb's official statement about the February 6 event
On February 7, Bithumb apologized to customers for the incorrect distribution of BTC to some users, providing key details about the incident.
The cause of the incident and Bithumb's immediate reaction
During the BTC reward distribution event, a BTC value input error occurred, resulting in some users receiving incorrect amounts of BTC. Important details include the following: Rewards were distributed to 695 users on February 6th at 19:00. 620,000 BTC coins (over $42 billion) were distributed incorrectly. The incorrect distribution was identified at 19:20. Bithumb restricted trades and withdrawals at 19:35, suspending them completely at 19:40. The misallocation caused some users to sell the BTC they received, leading to a sharp fluctuation in the price of BTC/KRW on the exchange.
Asset recovery status
Bithumb revealed that: 99.7% of BTC coins distributed via airdrop, totaling 618,212 BTC, were recovered. 1,788 BTC coins (over $1.21 million) were sold, but 93% of the equivalent assets (KRW and crypto) were recovered. No external transfer of BTC detected. The exchange noted that any BTC that has not yet been recovered and sold will be compensated using Bithumb's own assets.
No external hack or security breach involved
Bithumb emphasized that the event is not related to any external hack or security breach: The security of the exchange's system and the management of client assets do not present any problems. Transactions, deposits and withdrawals are working normally. Event transparency is 100% guaranteed.
Bithumb Compensation Plan
Meanwhile, Wu Blockchain reports revealed the exact details of the exchange's compensation plan: 110% compensation for users who sold at low prices during the incident (ie the entire price difference plus 10% additional compensation). KRW 20,000 compensation for all users who were online during the event. Zero trading fees for all users for seven days. Establishing a KRW 100 billion «Customer Protection Fund» to handle future emergencies. A future update to the internal control system, strengthening asset verification and introducing a multi-step approval process.
Wu said that he learned that Bithumb, South Korea's second largest crypto exchange, issued an announcement to apologize again for the accidental reward issuance that occurred on February 6, and announced a compensation plan and improvement measures. Bithumb said it has reported it to regulators and is cooperating with the investigation. Bithumb promised to fully compensate for the losses caused by this accident. The current estimated losses are about 1 billion won. The compensation plan includes: 110% compensation for users who sold at low prices during the accident… — Wu Shuo Blockchain (@wublockchain12) February 7, 2026
It is important to note that some users on X and even some crypto publications incorrectly reported the Bithumb incident online, spreading FUD about the exchange and suggesting that users received BTC instead of KRW. However, the stock market reports are very clear so far. Despite the recent market crash and continued FUD regarding some crypto exchanges, the overall market seems to be recovering. On February 7th, the market rallied over 3% and BTC is trading above $67,000 after falling to $60,000 levels on February 6th.
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