Crypto: Bithumb Recovers 99.7% Of Overpaid Bitcoin, Covers Remaining Shortfall

Bithumb says it has reclaimed most of the excess BTC credited during a promotional error and used company funds to cover 1,788 Bitcoin that had already been sold.

South Korean cryptocurrency exchange Bithumb says it has resolved an incident in which a promotional reward error credited certain user accounts with excess Bitcoin.

In a Sunday statement, the exchange confirmed it recovered 99.7% of the overpaid Bitcoin (BTC) on the same day the incident occurred. The remaining 0.3%, totaling 1,788 Bitcoin that had already been sold, was covered using company funds to ensure customer balances remained fully matched.

“Bithumb's holdings of all virtual assets, including Bitcoin (BTC), are 100% equivalent to or exceeding user deposits,” the exchange wrote.

According to Bithumb, most of the excess Bitcoin was retrieved directly from affected accounts, while the portion already liquidated in the market required reimbursement from corporate reserves. The exchange said no customer assets were lost, and deposits and withdrawals continued to operate normally.

Related: Bithumb flags $200M in dormant crypto assets across 2.6M inactive accounts

The exchange also announced compensation measures tied to the disruption. Users connected to the platform at the time of the incident will receive 20,000 Korean won ($15) each. Traders who sold Bitcoin at unfavorable prices during the volatility will receive full reimbursement of their sale value plus an additional 10% payment. Bithumb will also waive trading fees across all markets for seven days, starting on Monday.

The incident began on Friday when a system issue during a promotional event credited some users with an unusually large amount of Bitcoin, briefly triggering sharp price swings on the exchange as recipients began selling the funds. Bithumb said it restricted affected accounts and stabilized trading within minutes, preventing broader liquidations.

While the exchange did not disclose the total amount of Bitcoin initially credited in error, some users have claimed the figure was around 2,000 BTC. Bithumb did not confirm those estimates.

Related: South Korean lawmaker faces scrutiny over family ties to crypto exchange: Report

Source: CoinTelegraph