86 customers sold bitcoins accidentally sent by Bithumb: authorities

South Korean cryptocurrency exchange Bithumb accidentally distributed over $40 billion worth of bitcoin to customers as part of a promotional event. The company had intended to reward users with small cash amounts of 2,000 Korean won (approximately $1.37), but due to an error, winners received at least 2,000 bitcoins each instead. This incident occurred on a Friday, leading to a significant sell-off on the exchange as customers began to sell the mistakenly received bitcoins. Authorities reported that 86 customers sold the bitcoins that were accidentally sent to them. Bithumb quickly recognized the error and took immediate action to mitigate the situation. Within 35 minutes of the mistake, the exchange restricted trading and withdrawals for the 695 affected customers. Bithumb managed to recover 99.7 percent of the 620,000 bitcoins that had been erroneously distributed, which were valued at approximately $44 billion at current prices. The incident has raised concerns about the security and operational protocols of cryptocurrency exchanges. Bithumb issued an apology for the blunder, acknowledging the significant impact of the error on both the company and its customers. The exchange's rapid response to the situation highlights the challenges faced by cryptocurrency firms in managing large-scale transactions and promotional activities.