Bithumb Pursues Legal Action to Recover Mistaken Crypto Payout

Bithumb's recent operational mistake has left South Korea's crypto sector under scrutiny as the exchange takes legal action to recover Bitcoin mistakenly distributed during a promotional campaign.

The incident occurred on February 6th when Bithumb unintentionally distributed 620,000 BTC across hundreds of user accounts, with a notional value exceeding $43 billion. The error reportedly occurred after a staff member entered rewards in Bitcoin instead of Korean won.

Bithumb has filed for provisional seizure orders to freeze accounts linked to the incident, targeting around 7 BTC valued at roughly $496,000 in the initial recovery phase. This move is likely to shape the trajectory of broader lawsuits as early seizure actions set a precedent for how mistaken crypto transfers are treated under South Korean law.

Legal experts predict that claims of unjust enrichment will form the basis of lawsuits against users who retained or sold the funds. Officials have warned that individuals who converted the Bitcoin into cash could face greater financial exposure if courts rule against them.