Bithumb wins two lawsuits over $40 billion Bitcoin crediting error
South Korean crypto exchange Bithumb has won two lawsuits against users who sold Bitcoin mistakenly credited to their accounts. The company is seeking to recover funds following a February error that resulted in 620,000 BTC being credited to 249 customers instead of cash rewards.
The Seoul Central District Court ruled in favor of Bithumb on August 26 and 27, according to Chosun Biz. In one case, the exchange sought the return of 194 million won ($140,000), while the second involved 5 million won ($3,600).
Both cases proceeded through service by public notice because court documents could not be delivered to the defendants through ordinary methods. Two other Bithumb lawsuits seeking about $10,700 and $362,000 remain pending.
Error resulted in 620,000 BTC being credited
The incident occurred on February 6 during a Bithumb promotional campaign. The exchange intended to distribute rewards totaling 620,000 won, worth about $420 at the time, among 249 users.
However, an employee mistakenly selected Bitcoin instead of the Korean won as the payment unit. As a result, customers received 620,000 BTC worth more than $40 billion.
Bithumb recovered 618,212 BTC, or 99.7% of the mistakenly credited amount. However, before the affected accounts were frozen, some users managed to sell a combined 1,788 BTC.
In March, the exchange filed four unjust enrichment lawsuits against customers who sold the mistakenly credited assets and did not return the proceeds. Bithumb is seeking compensation in cash rather than the return of Bitcoin.
Regulator considers sanctions against Bithumb
The error drew the attention of South Korea's Financial Supervisory Service (FSS). The regulator launched an investigation, including an examination of how the exchange was able to credit customers with Bitcoin that it did not actually hold.
In early August, the FSS sent Bithumb its findings following the investigation, initiating a procedure that could lead to sanctions. A final decision and the size of any potential penalty have not yet been announced.
Meanwhile, Bithumb is preparing to go public. South Korea's second-largest crypto exchange has begun preparations for an IPO that is planned for 2028.
The exact timing will depend on market conditions and regulatory decisions.
Earlier, we reported that Kiwoom Securities is considering acquiring a stake in Bithumb amid growing interest in the crypto market among South Korean brokerage firms. The deal could become part of a broader convergence between the country's traditional financial sector and the digital asset industry.
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