Bithumb Seeks Asset Freeze in Bitcoin Payout Error Dispute

South Korean crypto exchange Bithumb has initiated legal action to recover the remaining bitcoin distributed in error during a promotional event in February.

The incident occurred on February 6, when a staff member entered 'BTC' instead of 'KRW', causing the system to credit accounts with an incorrect amount of bitcoin. This brief mistake created the appearance of over $40 billion in bitcoin balances on the platform, triggering a surge in trading activity and subsequent price drop.

Bithumb has since recovered most of the funds, but approximately 7 BTC, valued at around $500,000, remains outstanding. The exchange has filed for a provisional seizure to freeze accounts holding this amount, signaling that formal litigation may follow.