Crypto Company Accidentally Gives $44 Billion to Customers
The high-paying error occurred during the company’s promotional event.
JUNG YEON-JE/AFP via Getty Images
South Korean cryptocurrency exchange Bithumb accidentally distributed billions of dollars’ worth of bitcoin during a botched promotional event, briefly giving hundreds of customers instant crypto fortunes. The company said it mistakenly gave out roughly $44 billion worth of bitcoin to users on Friday after a rewards promotion went wrong. The event was meant to give participants 2,000 South Korean won—about $1.40—but instead credited winners with at least 2,000 bitcoin units each. Bithumb moved quickly to contain the damage. Within 35 minutes, the exchange suspended trading and withdrawals for affected accounts and said it recovered more than 99 percent of the funds mistakenly dispersed to about 695 users. In a statement issued Saturday, Bithumb apologized for the error and stressed that the incident was not the result of a security breach. “There are no problems with system security or customer asset management,” the company said. Regulators were less reassured. According to Reuters, South Korea’s Financial Services Commission said it plans to investigate the incident and examine other crypto exchanges for potential vulnerabilities and risks tied to virtual assets.
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