A routine crypto promotion in South Korea turned into a $40 billion blunder after a simple input error at Bithumb, the country’s second-largest cryptocurrency exchange.
The company meant to distribute small prizes totaling $425. Instead, a staffer mistakenly sent out 620,000 bitcoins.
Winners who expected just a few dollars briefly saw life-changing sums. One user due 2,000 won suddenly received more than $120 million in bitcoin.
As recipients rushed to sell or withdraw funds, bitcoin’s price slid 17%. Bithumb halted trading within 30 minutes to contain the chaos.
The exchange says losses reached about $685,000 and that it has recovered or reversed over 99% of the mistaken payouts. It is still chasing users who sold roughly 100 bitcoins worth $9 million, promising them equal compensation.
Regulators have opened a formal probe, while Bithumb waived trading fees for this week and set up a $70 million customer protection fund for future errors.