Incident Overview
In a recent incident that momentarily shook the market, South Korean cryptocurrency exchange Bithumb has announced the successful retrieval of almost all Bitcoin that was incorrectly allocated during a promotional event. This mishap occurred on February 6 when, instead of distributing incentives in Korean won as intended, a technical glitch caused Bitcoin to be credited to users. The unintended transfer led some users to sell off the assets quickly, causing a temporary dip in Bitcoin prices on Bithumb’s platform, which diverged from those on other exchanges.
Response and Recovery
Following the error, which Bithumb clarified was an internal operational failure rather than an external security breach, the exchange acted swiftly to stabilize the situation. By February 7, Bithumb reported that it had recovered approximately 99.7% of the improperly allocated Bitcoin, with the remainder being reconciled through funds from the exchange itself, as some users had already transacted the Bitcoin before the system error was rectified.
Measures Taken
The rapid response included blocking the affected accounts and initiating a recovery process to restore customer balances, which has since been completely rectified, ensuring that client assets remain secure. To address the incident’s impact on users, Bithumb plans to compensate traders who sold their Bitcoin at reduced prices during the incident and introduce measures to enhance user confidence, such as fee waivers.
Future Precautions
Additionally, the company established an internal task force to improve operational controls, aiming to prevent future errors of a similar nature. Bithumb reiterated its dedication to safeguarding user funds and underscored the effectiveness of its response protocols following this event, which underscored the potential for localized disruptions to impact market liquidity even when the broader conditions are stable.
