Bithumb compensates affected traders after a massive Bitcoin overcredit

The Bithumb blunder seems to have been corrected. Everything returned to normal in 48 hours. No client lost a satoshi. Yet the question remains. Is it really back to square one? Or does this giant misstep reveal deeper flaws in the crypto industry? Crypto traders are holding their breath. The case questions the entire crypto-sphere.

Bitcoin blunder worth several billion: Bithumb recovers in 35 minutes

On Friday, February 6 at 7 p.m., a configuration error turned a reward of a few thousand wons into massive bitcoin. Hundreds of thousands of BTC landed in accounts. The bitcoin price on Bithumb plunged 17% in minutes.

Bithumb reacted in 35 minutes: 695 accounts blocked, trading and withdrawals cut. The same day, 99.7% of excess BTC were recovered. The remaining 0.3%, or 1,788 BTC already sold, were fully reimbursed from the exchange’s own funds.

No client loss. No hack. Deposits and withdrawals resume normally. Crypto investors discover a rare quick reaction in a CEX. The case shows how a simple human error can shake the entire crypto market. Fortunately, Bithumb avoided total chaos. Crypto traders salute the transparency, but the incident raises questions about internal system robustness. 

This exceptional speed reassures the crypto-sphere. Yet it hides a structural vulnerability that no one ignores anymore.

Crypto traders reimbursed: Bithumb goes well beyond its promises

From February 8, Bithumb keeps its word. All users connected at the time of the incident receive 20,000 wons, about 15 dollars. Those who sold bitcoin at low prices during the panic recover the full price of their sale plus 10% compensation. And for seven days, starting Monday, February 9, all trading fees are zero across all markets. 

The official statement is clear: 

Bithumb’s bitcoin (BTC) holdings and all other virtual assets are 100% equal or superior to user deposits. Clients keep their assets safely.

Official Bithumb Statement, February 8, 2026.

Crypto traders have been compensated. Some even made a little money from the affair. This generosity turns an error into a loyalty-building opportunity. The crypto industry watches: Bithumb raises the crisis response standard.

Bithumb faces regulators and its US IPO

The incident comes at the worst time for Bithumb. The exchange aims for a US IPO this year. A few weeks earlier, the consumer protection authority had already opened an investigation into its advertisements. From February 7, the Financial Supervisory Service launched an on-site inspection. It requested the full list of employees authorized to issue crypto payments. 

Vice-President Hwang Seung-wook writes internally:

The fact that a simple error in setting up an event reward can destabilize an entire crypto exchange soberly demonstrates the current state of our systems and processes. Rather than blaming an individual for errors, we will eliminate lax processes that do not prevent such faults.

Bithumb promises two concrete fixes: anti-fat-finger system by end of March, automatic detection of abnormal transactions by end of May. Pressure rises on the entire crypto industry.

Key figures of this bitcoin and crypto saga

• BTC price: 70,625 dollars at writing;
• 1,788 BTC sold fully reimbursed by Bithumb;
• 99.7% of excess bitcoins recovered the same day;
• Regulator inspection launched on February 7;
• 7 days without trading fees from February 9.

This story recalls a far-fetched case experienced by Crypto.com. A couple mistakenly received several million dollars in crypto. They spent almost everything. They end up in prison. A simple mistake can cost very dearly. Take care.