Bithumb to Compensate for Customer Losses Due to Accidental Bitcoin Airdrop, Commits to System Improvements

South Korean cryptocurrency exchange Bithumb mistakenly transferred over $40 billion worth of Bitcoin to users during a promotional event on February 6, 2026. The exchange quickly blocked trading and withdrawals for 695 affected accounts, recovering 99.7% of the misplaced funds within 35 minutes. The error briefly caused a 17% price drop for Bitcoin on the platform.

Bithumb confirmed that the incident was unrelated to any hacking or security breaches. The firm admitted that some users sold the mistakenly distributed Bitcoin, creating temporary volatility. To address customer concerns, the exchange pledged to use its own assets to cover all losses and announced a compensation plan for impacted users.

The exchange has taken several steps to prevent similar incidents. Bithumb will strengthen its asset verification system and implement a multi-step payment process. The firm also plans to introduce a 24/7 AI system to detect and block abnormal transactions in real time. An external audit of the exchange's systems is also in the works.

Why Did This Happen?

The error occurred during a promotional event in which users were meant to receive a small cash reward of 2,000 won. Instead, Bithumb mistakenly sent 2,000 Bitcoin to each user. The misconfiguration triggered widespread panic selling, which in turn caused a sharp price dislocation. The exchange's internal controls, however, limited the damage by halting trading on affected accounts within five minutes.

The firm stated that no customer asset losses were identified so far. Nonetheless, Bithumb will provide 110% compensation for any assets sold during the volatile period, as well as a 20,000 KRW payment to all users who accessed the platform during the incident.

How Did Markets Respond?

Bitcoin prices on Bithumb dropped to 81.1 million won during the incident before recovering to 104.5 million won. The volatility had limited impact on broader crypto markets, though the incident underscored the operational risks inherent in centralized exchanges. Bithumb trails Upbit as a major player in the South Korean crypto space.

The firm has also announced that all transaction fees will be waived for seven days as a goodwill gesture to users. This move aims to restore trust and encourage continued trading activity on the platform.

What Are Analysts Watching Next?

Industry observers are closely monitoring Bithumb's next steps. The exchange has pledged to publish follow-up reports on the incident and to provide details on how it will reconcile the distributed assets. Analysts are also watching whether Bithumb will implement a reversal or clawback process for the mistakenly sent Bitcoin.

Bithumb has also announced the creation of a 100 Billion KRW customer protection fund to safeguard against future incidents. This fund is intended to provide immediate compensation for any unexpected events that could impact customer assets.

Regulators and industry experts are also watching for any broader implications of the incident. The exchange's handling of the situation has raised questions about the reliability of centralized platforms in managing high-stakes promotional activities.

Investors are advised to monitor Bithumb's ongoing efforts to improve its internal controls and to track any independent reviews of its systems. The incident highlights the importance of operational transparency and robust risk management in the rapidly evolving crypto sector.

Bithumb's public commitment to transparency and accountability may help restore customer trust. However, the long-term impact will depend on whether the firm can demonstrate sustained improvements in its internal processes and risk controls.