thecryptobasic.com
Bitcoin briefly traded at a steep discount on South Korea’s Bithumb exchange after an internal error allegedly sent large amounts of the cryptocurrency to users.
The sudden disruption rattled local markets and drew attention at a sensitive time for the exchange, which is already under regulatory scrutiny.
Key Points
- Bitcoin prices on Bithumb dropped roughly 10% below global benchmarks during the incident.
- An estimated 2,000 $BTC, worth approximately $133 million, was allegedly distributed across hundreds of user accounts.
- Recipients reportedly sold the unexpected Bitcoin immediately, pushing prices on Bithumb down to around $56,000 (82 million won).
- Trading later stabilized, with Bitcoin rebounding above $66,000 (98 million won).
- Bithumb has not publicly confirmed the error, the amount involved, or whether affected trades will be reversed.
Accidental Distribution Triggers Price Shock
The anomaly emerged when Bitcoin prices on Bithumb fell roughly 10% below global benchmarks. Industry observers attributed the divergence to a distribution mistake inside the exchange.
According to Definalist, a core member of the crypto collective Dumpster DAO, a Bithumb employee mistakenly selected Bitcoin instead of cash while processing a promotional payout. The intended reward was reportedly worth about 2,000 Korean won, less than two US dollars.
Instead, Bitcoin was distributed. Consequently, an estimated 2,000 $BTC, valued at roughly $133 million, was allegedly credited across hundreds of user accounts. The account spread rapidly online, though Bithumb has not confirmed the details.
Rapid Selling Deepens the Drop
Once the funds appeared, recipients acted quickly. Many users reportedly sold the unexpected Bitcoin immediately at market prices, thereby intensifying selling pressure on Bithumb’s Bitcoin pairs.
The impact was swift. Prices on the exchange fell to around $56,000, or approximately 82 million won, sharply widening the gap with international markets. Later, trading stabilized, and Bitcoin rebounded above $66,000, near 98 million won.
Even so, the episode highlighted how quickly liquidity imbalances can emerge when internal controls fail.
Silence From Bithumb Raises Questions
Bithumb has yet to provide a public explanation of the incident. The exchange has neither confirmed the alleged transfer error nor disclosed the amount involved.
Important details also remain unresolved. Specifically, it is still unclear whether the funds were withdrawn, frozen, or reversed. Bithumb has not said whether affected trades will be canceled.
This lack of clarity has left traders waiting for answers. It has also amplified concern, given the broader regulatory context surrounding the exchange.
Regulators Already Examining Advertising Practices
Just days before the incident, South Korea’s Fair Trade Commission (FTC) had turned its attention to Bithumb. On February 4, two investigators visited the exchange’s headquarters in Seoul’s Gangnam district, according to Yonhap News Agency’s EInfoMax service.
The inquiry centers on whether Bithumb overstated its market strength in recent marketing campaigns. For instance, promotional materials published in March and April 2025 claimed the exchange offered the highest liquidity in the domestic crypto market.
South Korean newspaper Chosun Ilbo reported that regulators consider these claims potentially misleading. Under local law, exaggerated advertising can result in fines or other disciplinary measures.
Market Share Data Underpin the Review
Market data plays a central role in the investigation. Figures from CoinGecko, cited by broadcaster KBS, show that Upbit dominated trading volumes in the Korean won last year.
Specifically, Upbit held about 68% of the market, while Bithumb accounted for roughly 28%. Therefore, regulators are now weighing whether Bithumb’s messaging aligned with these figures.
The review could influence how exchanges describe their competitiveness in future campaigns.
Past Promotions Also Under Review
Beyond advertising language, regulators are also examining earlier customer incentives. South Korean media report that late last year, Bithumb ran a promotion offering about $70 to new users who connected through its application programming interface (API).
More than 50,000 people reportedly joined the program. However, Bithumb allegedly changed the eligibility rules mid-campaign, leaving around 30,000 participants without the expected payout.
The FTC is now considering whether those changes unfairly disadvantaged users.