Bithumb Mistakenly Deposits Large Bitcoin Amounts To Users, Triggers Crash

TLDR

• Bithumb accidentally deposited Bitcoin instead of Korean won to users during a promo event.
• Bitcoin’s price dropped by over 10% on Bithumb after the accidental deposit and selloff.
• Bithumb acted quickly to stop transactions and prevent further price issues from the error.
• The Bitcoin error happened alongside a significant market selloff, worsening price drops.

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Bithumb, a South Korea-based cryptocurrency exchange, made a significant operational mistake that led to the accidental deposit of large amounts of Bitcoin into user accounts. This error occurred during a promotional event that was set to reward participants with small amounts of Korean won.

The exchange had planned to distribute rewards between 20,000 and 50,000 Korean won through a “Random Box” event. However, the system mistakenly credited Bitcoin to winners instead of the intended Korean won.

The error occurred at approximately 6 p.m. local time. Some users received as much as 2,000 Bitcoin each, worth billions of Korean won based on the prevailing exchange rate. These unexpected Bitcoin deposits led to confusion among recipients, some of whom immediately sold the coins, triggering a sharp drop in the price of Bitcoin on Bithumb.

Market Reaction and Bitcoin Price Drop

The sudden influx of Bitcoin on Bithumb led to a market reaction that saw the price of the cryptocurrency drop significantly. Bitcoin’s value on the exchange fell more than 10% below the broader market levels during the incident.

The rapid selling of mistakenly credited Bitcoin coins by users caused further downward pressure on the price. This event took place in the midst of an ongoing market selloff, which was already causing widespread price declines in the cryptocurrency market.

Bithumb quickly acted to control the situation. The exchange’s internal monitoring systems flagged the abnormal transactions, and it restricted transactions related to the affected accounts. While the exchange emphasized that no user assets were lost, the price drop on the platform continued for a short time as the market adjusted to the unintended disruption.

Exchange’s Response to the Error

In response to the incident, Bithumb issued a public apology. The exchange acknowledged the mistake and assured users that it had identified the issue swiftly through its internal control systems. A statement from Bithumb read, “We sincerely apologize for any inconvenience caused to our customers due to the confusion that arose during the payment process for this event.”

The exchange also clarified that the error was purely operational and not a result of hacking or any external security breach. It assured its users that the issue did not lead to any loss or damage to their assets. Furthermore, the exchange highlighted the role of its “domino liquidation prevention system,” which helped avoid more severe price crashes or cascading liquidations.

Bitcoin Market Context Amid the Selloff

The accidental Bitcoin deposit happened against the backdrop of one of Bitcoin’s most significant price drops in recent history. Bitcoin had already suffered a massive selloff, with its price plunging to $60,000, down from a previous high of over $126,000 in October 2025. This price decline, the largest raw dollar drawdown ever recorded, was intensified by leverage and the liquidation of over $1 billion in derivatives positions.

As the market slid into the $60,000 range, Bithumb’s accidental Bitcoin distribution added to the confusion and volatility. The error not only caused a temporary disruption within Bithumb’s platform but also contributed to the broader market’s already fragile state. The incident serves as a reminder of the risks involved in cryptocurrency trading, particularly when operational mistakes intersect with volatile market conditions.

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