Bithumb Wins Two Lawsuits Over 620,000 BTC Credit Error, Recovers 99.7% of Funds
Bithumb has secured two court victories in its efforts to recover funds from customers who sold Bitcoin mistakenly credited during a February 2026 promotional campaign. The Seoul Central District Court ruled in favor of the exchange in two separate unjust enrichment cases, including one that ordered a defendant to repay approximately 194 million Korean won (about $140,513).
The rulings mark a significant step for the South Korean exchange, which has been working to recover assets following one of the crypto industry’s largest operational errors. Bithumb filed four civil lawsuits in March against users who retained proceeds from selling the incorrectly credited Bitcoin, and the latest decisions bring the total number of successful cases to two.
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Court rulings and recovery efforts
The most recent ruling involved a customer who sold Bitcoin that Bithumb had mistakenly credited to their account. The court ordered the defendant to return the proceeds generated from those sales, citing unjust enrichment. Bithumb had previously won a case involving approximately five million won, and two remaining claims are still pending, involving approximately 14.8 million won and 500 million won, respectively.
The legal victories could strengthen Bithumb’s position as it seeks recovery from all affected users. However, the remaining proceedings will determine whether the court applies similar reasoning across the other outstanding claims.
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The 620,000 BTC error and its aftermath
The dispute began on February 6, when Bithumb distributed promotional rewards to hundreds of customers participating in an event. An employee reportedly entered Bitcoin as the reward unit instead of Korean won, creating an extraordinary internal crediting error. Bithumb intended to distribute 620,000 won, but mistakenly credited approximately 620,000 BTC across affected customer accounts. At the time, Bitcoin was worth roughly $43 billion, making the incident one of crypto’s most significant operational errors.
Bithumb detected the problem quickly and blocked trading and withdrawals for 695 customers within approximately 35 minutes of distribution. The exchange subsequently recovered 618,212 BTC, representing approximately 99.7% of the mistakenly credited amount. However, customers had already sold 1,788 BTC, requiring Bithumb to pursue recovery through additional measures and court proceedings.
The incident briefly pushed Bithumb’s BTC-KRW trading pair sharply lower, with prices falling approximately 15% during the disruption. South Korean financial authorities subsequently investigated Bithumb’s internal controls, risk management, and procedures surrounding customer asset accounting.
What this means for Bithumb and the industry
The court rulings provide some clarity on how South Korean law treats mistaken cryptocurrency credits, a relatively new area of legal precedent. For Bithumb, the victories support its recovery efforts and demonstrate a willingness to pursue legal action when necessary.
Bithumb has said it would redesign its payment processes and strengthen internal controls to prevent similar mistakes. The exchange is also targeting an initial public offering in 2028, which increases scrutiny surrounding governance and operational safeguards. This incident, and the exchange’s response, will likely be a key part of that narrative as it prepares for public markets.
For the broader crypto industry, the case highlights the importance of resilient internal controls and the legal complexities that can arise from operational errors. As exchanges grow and handle larger volumes, the potential impact of mistakes increases, making strong risk management a critical priority.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile and uncertain; readers should conduct their own research before making any investment decisions.
