A significant trading error, often referred to as a "fat finger" mistake, has occurred in the South Korean cryptocurrency sector.

This past Friday, the South Korean cryptocurrency exchange Bithumb accidentally distributed Bitcoin worth over $40 billion to its users. According to a Yonhap News Agency report citing unnamed sources, Bithumb initially intended to distribute 620,000 Korean won (approximately $424) to winners of a promotional event. However, an employee mistakenly entered "Bitcoin" instead of "won" during the transaction process. This error resulted in the exchange distributing 620,000 Bitcoin to 695 users around 7:00 PM local time on Friday. Recipients found their accounts credited with at least 2,000 Bitcoin each.

Upon discovering the unexpected windfall, many recipients immediately began selling the Bitcoin, converting it to cash, and withdrawing the funds. The exchange reported identifying the problem within 20 minutes. Bithumb stated, "An abnormal quantity of Bitcoin was erroneously deposited into some user accounts. As some of these accounts began selling the incoming Bitcoin, the price experienced a brief but sharp fluctuation."

Exchange data showed that the price of Bitcoin on Bithumb plunged by approximately 17% during Friday evening, dropping from around 98.29 million won (about $67,188) to 81.1 million won (approximately $55,400). Trading volume surged dramatically as a result.

Bithumb indicated that it began suspending trading and withdrawals for the affected accounts at 7:35 PM and completely blocked related operations by 7:40 PM. The exchange claims to have recovered 99.7% of the erroneously distributed cryptocurrency.

CEO Lee Jae-won announced that customers who were "forced into panic selling" during the brief window of the error would be compensated for their full losses and receive an additional 10% bonus. In a statement released on Saturday, he said, "We offer our sincerest apologies for the confusion and inconvenience caused. We feel a heavy sense of responsibility and acknowledge our failure to uphold the two core values of a virtual asset exchange: stability and integrity."

By Saturday afternoon at 4:00 PM, the company estimated customer losses to be around 1 billion won. Bithumb further stated it would utilize company assets to cover any shortfall and ensure customer account balances are restored.

South Korean financial regulators, including the Financial Services Commission (FSC), commented that this incident "exposed the vulnerabilities and risks associated with virtual assets." Following an emergency meeting, regulators issued a statement announcing a review of the exchange's internal control systems and its practices for holding and operating virtual assets. Should the review uncover any irregularities, on-site inspections of Bithumb and other cryptocurrency exchanges will be initiated.