Bithumb’s Legal Victories
Bithumb, a prominent South Korean cryptocurrency exchange, has recently achieved initial legal victories in two lawsuits aimed at reclaiming funds from users who sold Bitcoin that was incorrectly credited to their accounts. The Seoul Central District Court delivered favorable rulings for Bithumb on Wednesday and Thursday, thus advancing the exchange’s pursuit of approximately 14.8 million won ($10,700) and 500 million won ($362,000) in two additional lawsuits that are still pending. These decisions also highlighted the exchange’s attempts to rectify a significant error made earlier this year.
The Bitcoin Misallocation Incident
In February 2026, a mix-up during a promotional event led to Bithumb erroneously crediting a staggering 620,000 BTC, a sum exceeding $40 billion at the time, to various user accounts. The misallocation transpired as an employee mistakenly selected Bitcoin instead of Korean won to distribute rewards intended for 249 users, which was just 620,000 won (about $420).
The exchange managed to recover 618,212 BTC, equating to 99.7% of the mistakenly credited amount; however, some users had already liquidated approximately 1,788 BTC from their accounts before Bithumb intervened and froze the affected accounts. As a response to this oversight, Bithumb initiated four unjust enrichment lawsuits in March against those who sold the erroneously credited Bitcoin, seeking returns in cash rather than the cryptocurrency itself.
Court Rulings and Investigations
Both successful court cases proceeded via public notice as typical delivery methods for court documents failed to reach the defendants. One of the rulings involved a claim valued at 194 million won ($140,000), while another involved 5 million won ($3,600). The South Korean Financial Supervisory Service (FSS) is also investigating this incident, questioning how Bithumb could credit customers with Bitcoin that it did not actually possess. In August, the FSS formally began sanction proceedings against the exchange, although as of now, no explicit penalties have been revealed.
Ongoing Legal Challenges
This is not the first time Bithumb has faced legal challenges this year; in June, police raided its offices concerning allegations of favoritism in hiring practices involving a local lawmaker. Additionally, the company is currently appealing a six-month partial business suspension resulting from anti-money laundering violations, which a Seoul court temporarily paused pending further judicial review.
