South Korea-based cryptocurrency exchange Bithumb has acknowledged an internal error that led to an accidental transfer of excess bitcoin to a small number of users, triggering short-term price fluctuations on its platform.
In a blog post published Friday, Bithumb said the incident occurred during a payment-related process. Some recipients of the mistakenly sent bitcoin reportedly sold the assets, which caused temporary distortions in the exchange’s bitcoin price. The company emphasized that the issue was quickly identified and contained.
“We sincerely apologize for any inconvenience caused to our customers due to the confusion that arose during the payment process,” Bithumb said in a statement translated via Google.
The exchange added that its internal monitoring systems detected the abnormal transaction early, prompting an immediate restriction on activity tied to the affected account.
No hacking or customer losses reported
Bithumb did not disclose how much bitcoin was mistakenly distributed or how many customer accounts were involved. However, the company stressed that the incident was not the result of an external hack or a security breach.
According to Bithumb, its internal “domino liquidation prevention system” helped limit the impact of the sudden price movement, preventing a broader cascade of forced liquidations that can occur during sharp market swings.
The exchange also stated that the incident did not result in any loss or damage to customer assets, suggesting that the situation was resolved without long-term harm to users.
A reminder of operational risks in crypto markets
While the price disruption was limited to Bithumb’s platform, the incident highlights how operational errors, not just cyberattacks, can affect trading conditions in cryptocurrency markets. Even brief pricing anomalies can create confusion for traders, particularly during periods of lower liquidity.
Founded in 2014, Bithumb is one of South Korea’s largest and most established crypto exchanges, serving a significant share of the country’s digital asset investors. The company said it is reviewing its internal processes to prevent similar incidents in the future.
