In an unprecedented operational failure that briefly shook the global cryptocurrency market, major South Korean exchange Bithumb accidentally distributed over 620,000 Bitcoins—valued at approximately $44 billion—to users on Friday. This massive Bithumb Bitcoin distribution error occurred during a routine promotional event intended to reward customers with small cash prizes, but instead resulted in one of the largest accidental asset transfers in financial history.
The $44 Billion 'Fat Finger' Mistake Explained
The incident began late Friday, February 6, 2026, during a "Random Box" promotional campaign. According to initial reports, Bithumb intended to distribute small rewards of approximately 2,000 Korean Won (roughly $1.40 USD) to participants. However, a critical data entry error—often referred to in finance as a "fat finger" mistake—led to the system distributing 2,000 Bitcoins to each eligible user instead of the intended currency.
The scale of the error was astronomical. With Bitcoin trading near $71,000 at the time, each user inadvertently received assets worth over $140 million. In total, the exchange erroneously credited roughly 695 accounts with a combined sum of 620,000 BTC. To put this into perspective, this figure represents nearly 3% of the total circulating supply of Bitcoin, a volume large enough to destabilize global markets if liquidated.
Crypto Flash Crash February 2026: Market Reaction
The market reaction was immediate and chaotic. As users realized they suddenly held fortunes in their wallets, many attempted to liquidate their holdings instantly. This mass sell-off triggered a localized crypto flash crash February 2026 on the Bithumb platform. Bitcoin prices on the exchange plummeted by approximately 17% in minutes, dropping from around 98 million KRW to as low as 81.1 million KRW.
While the crash was most severe on Bithumb, the shockwaves were felt globally. Arbitrage bots and traders on other platforms reacted to the sudden price anomaly, leading to significant Bitcoin price volatility today across major exchanges including Binance and Coinbase. The panic was short-lived but highlighted the fragility of liquidity when faced with such massive, unexpected volume.
The 35-Minute Scramble to Recover Assets
Bithumb's security teams identified the accidental Bitcoin transfer news almost immediately. Within 35 minutes of the erroneous distribution, the exchange froze all withdrawals and trading for the affected accounts. This swift action likely saved the exchange from complete insolvency.
"We immediately recognized the abnormal transaction through our internal control system and promptly restricted transactions," a Bithumb spokesperson stated in a public apology. The exchange confirmed that it has successfully recovered 99.7% of the distributed assets, totaling roughly 618,212 BTC. However, approximately 125 Bitcoins—worth nearly $9 million—remain unrecovered, likely withdrawn or successfully sold by users who acted within the narrow 30-minute window.
South Korea Crypto Exchange News: Trust and Security
This incident is the latest in a series of security and operational challenges facing South Korean platforms. While Bithumb has assured users that the Bithumb 44 billion mistake was an internal administrative error and not a result of an external hack, the event has raised serious questions about cryptocurrency security failure protocols regarding manual data entry.
Regulators at South Korea's Financial Supervisory Service (FSS) are reportedly reviewing the incident. The sheer magnitude of the error—exceeding the exchange's entire reserves—has prompted calls for stricter automated safeguards for promotional distributions. Bithumb has pledged to strengthen its verification systems and introduce AI-based tools to detect abnormal transaction volumes in real-time to prevent a recurrence.
Compensation and What’s Next for Users
In a bid to restore confidence, Bithumb has announced a compensation plan for users affected by the platform freeze and the subsequent price volatility. The exchange stated it would compensate users who panic-sold their legitimate holdings during the crash at 110% of the loss value. Additionally, all active users during the incident window will receive a small corrective airdrop as a gesture of goodwill.
For the crypto community, this event serves as a stark reminder of the risks associated with centralized exchanges. While the prompt recovery prevented a total market collapse, the fact that a simple typo could trigger a $44 billion liquidity crisis underscores the need for more robust
