Bithumb Seeks Court Freeze on Misdirected Bitcoin Holdings

South Korean cryptocurrency exchange Bithumb has taken a significant step in attempting to recover its losses from a high-profile error that occurred earlier this year. In February, the exchange mistakenly distributed 620,000 BTC worth over $43 billion at the time during a promotional campaign.

The error was caused by a staff member entering the reward unit as BTC instead of KRW, leading to a large and unintended payout. While most recipients returned the funds voluntarily, some are refusing to do so, citing that the fault lay entirely with Bithumb.

In response, Bithumb has filed for a court freeze on 7 BTC worth approximately $496,000 at current prices. This move marks a significant shift from internal recovery efforts to formal legal measures and highlights the complexities of digital asset ownership and return obligations.