Crypto firm apologises after accidental $40 billion bitcoin transfer

South Korean exchange Bithumb says it accidentally sent roughly 2,000 bitcoins to about 695 users during a promotion, recovered 99.7% of 620,000 bitcoins and restricted trading and withdrawals while addressing the error.

Bithumb has apologised after an apparent mistake in a promotional distribution briefly sent large bitcoin amounts to users and affected trading on its platform. The exchange said it intended to send about 2,000 won (roughly $1.37) per user but instead transferred around 2,000 bitcoins to each of about 695 accounts. Bithumb reported it recovered 99.7% of the 620,000 bitcoins involved and restricted trading and withdrawals while addressing the incident. The platform emphasised the issue was not related to external hacking or a security breach. Key details: - About 695 customer accounts were affected by the erroneous distribution. - The company said it meant to send about 2,000 won per user but transferred roughly 2,000 bitcoins per person. - Bithumb reported recovering 99.7% of the 620,000 bitcoins and restricted trading and withdrawals within 35 minutes. - The platform said prices briefly fell on its charts, showing a 17% drop, and that it managed to bring the situation under control within five minutes. - Bithumb announced it would compensate affected customers for unfavourable trade prices, covering the full price difference plus a 10% bonus, and estimated losses at about 1 billion won. - The company stated the incident was unrelated to external hacking or security breaches. Summary: The incident briefly prompted volatility on Bithumb's platform and led the company to limit activity while recovering most of the assets. Bithumb said it will compensate affected customers; further actions and any wider implications are undetermined at this time.