Bithumb Wins Bitcoin Lawsuit
Bithumb wins first court ruling seeking return of mistakenly credited Bitcoin.
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Key Points
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618,214 BTC were recovered before they could be traded, and 1,786 BTC had already been sold; overall, the recovery rate of the mistakenly credited 620,000 BTC was about 99% by March as Bithumb continued efforts to reclaim the funds.
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The February event involved 620,000 BTC being credited as rewards, with the market value of those Bitcoins reportedly around $5 billion at the time.
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The four unjust enrichment lawsuits total about 713.8 million won; the August 27 ruling covered the second-largest claim of roughly 194 million won, with the other three claims around 500 million won, 14.8 million won, and 5 million won.
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The February incident stemmed from a random-box promotion that paid 249 winners, and the error occurred when the payout unit was entered as Bitcoin instead of won; the issue prompted rapid blocks on withdrawals and internal controls within minutes.
Bithumb won its first court ruling on August 27 over a massive Bitcoin blunder from February, with a Seoul judge ordering one user to repay about 194 million won. The South Korean exchange had accidentally credited 620,000 Bitcoin as rewards during a promotional event — worth roughly $5 billion at the time — triggering automated payouts that spread beyond its actual holdings The Block.
The exchange moved fast, blocking withdrawals within minutes and recovering 618,214 Bitcoin before they could be traded. About 1,786 Bitcoin had already been sold, but Bithumb managed to recover roughly 99% of the mistaken funds by March Cointelegraph. The August ruling covers one of four lawsuits seeking to recover proceeds from users who sold the credited Bitcoin, with three other claims still pending Crypto.news.
How 620,000 Bitcoin Got Credited by Mistake
The February incident started with a random-box promotion that awarded 249 winners with Bitcoin rewards. A critical error happened when staff entered the payout unit as Bitcoin instead of South Korean won. The system processed the massive overpayment instantly, crediting far more Bitcoin than Bithumb actually held CryptoTimes.
Bithumb's internal controls kicked in within minutes, blocking all withdrawals to prevent the Bitcoin from leaving the exchange. This rapid response was crucial — it trapped most of the mistaken funds before users could move them to other platforms or sell them Crypto News.
One User Must Repay 194 Million Won in Sold Bitcoin
Judge Kim Yu-seong of Seoul Central District Court ruled that one defendant must return approximately 194 million won — the proceeds from selling mistakenly credited Bitcoin. This was the second-largest claim among Bithumb's four unjust enrichment lawsuits Crypto.news.
The four lawsuits total roughly 713.8 million won in claims. One lawsuit seeks 500 million won, another 194 million won, a third 14.8 million won, and the smallest 5 million won CryptoTimes. Legal experts say the court's decision was expected and strengthens Bithumb's case in the remaining three suits The Block.
What This Ruling Means for the Remaining Cases
The August 27 decision sets a legal precedent that could push the other three defendants to settle or lose. Courts generally follow earlier rulings when the facts are similar, making full recovery more likely Cointelegraph. Bithumb's ability to recover 99% of the actual Bitcoin made the lawsuits about money, not asset retrieval — a clearer legal argument.
This case highlights the dangers of automated reward systems in crypto exchanges. One typing error created a $5 billion problem in seconds. The ruling underscores why legal remedies matter when erroneous transfers occur, and why exchanges need strict controls on large payouts The Block.
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