South Korean cryptocurrency exchange Bithumb was thrust into the spotlight on February 6, 2026, following reports of a major operational error. Allegations surfaced on social media, echoed by on-chain analytics firm Lookonchain, that a staff mistake during a routine airdrop resulted in the accidental distribution of 2,000 Bitcoin (BTC) to users instead of the intended 2,000 Korean Won (KRW) reward.
The erroneous distribution, valued at approximately $133 million, triggered an immediate and sharp sell-off on the exchange. This overwhelming selling pressure caused Bitcoin's price on Bithumb to crash by more than 10% below its global market rate, creating a significant price dislocation. The BTC/KRW trading pair briefly traded at a steep discount compared to prices on other major exchanges like Binance and Coinbase.
Social media reports from users like Evan Luthra and Definalist, a core member of Dumpster DAO, detailed the incident. Definalist described it as a "comedy of errors," where a staff member apparently typed "BTC" instead of "KRW" for a random box prize. The price crash was largely confined to Bithumb's isolated order book, as users sold the unexpected Bitcoin windfall directly on the platform, overwhelming its liquidity. Global arbitrage mechanisms had not yet adjusted the discrepancy, preventing the sell-off from spreading to other markets.
As of press time, Bithumb had not publicly confirmed the details of the alleged transfer error or issued an official statement on corrective measures. It remains unclear whether the funds were successfully withdrawn, frozen, or reversed, or if affected trades will be rolled back. The exchange, one of South Korea's largest, has a history of operational and security challenges, including a 2017 data breach and a 2020 court case where it was found partially liable for a user's losses.
This incident highlights persistent operational risks and internal control vulnerabilities at major cryptocurrency exchanges, demonstrating how a simple human error can cascade into substantial market disruption, even as the industry matures.
