Bithumb Recovers 99.7% of Excess Bitcoin After Reward Error
By John Nada·Feb 8, 2026·5 min read
Bithumb has recovered 99.7% of excess Bitcoin from a promotional error, covering losses with company funds. Affected users will receive compensation.
Bithumb has swiftly addressed a significant issue involving overpaid Bitcoin, recovering 99.7% of the excess credited to user accounts. The exchange announced this resolution in a recent statement, confirming that the remaining 0.3%, amounting to 1,788 Bitcoin that had already been sold, was covered using company funds to ensure customer balances were fully matched.
The incident, triggered by a promotional reward error, briefly caused sharp price fluctuations on the exchange as users began selling the erroneously credited Bitcoin. Bithumb stated that most of the excess Bitcoin was retrieved directly from accounts, while the portion that had been liquidated required reimbursement from corporate reserves. This rapid response highlights Bithumb's commitment to maintaining trust in its platform, especially given the sensitive nature of cryptocurrency trading and the heightened scrutiny that exchanges face regarding operational integrity.
Bithumb's approach to handling the incident involved immediate action. The exchange quickly restricted affected accounts to stabilize trading and prevent further complications. This decisive measure was crucial in averting a potentially more serious market disruption, as traders rushed to liquidate the mistakenly credited assets. By stabilizing trading within minutes, Bithumb successfully mitigated the impact of the error, which could have resulted in significant losses not only for individual users but also for the broader market.
To further assure its users, Bithumb confirmed that the incident was not related to hacking and emphasized that no customer assets were lost during the error. This is particularly noteworthy in an industry where security breaches and hacks remain a prevalent concern for users. The exchange maintained that deposits and withdrawals continued as normal throughout the incident, underscoring its operational resilience.
In terms of compensation, Bithumb announced several measures to support affected users. Those connected to the platform at the time of the incident will receive 20,000 Korean won, approximately $15, as a goodwill gesture. Moreover, traders who sold Bitcoin at unfavorable prices during the disruption will not only be reimbursed for their sale value but will also receive an additional 10% payment. This proactive compensation strategy is designed to alleviate dissatisfaction among users who experienced financial setbacks due to the error.
Additionally, Bithumb has taken steps to enhance customer satisfaction by waiving trading fees across all markets for seven days, starting on the following Monday. This initiative aims to encourage trading activity and restore user confidence following the incident. It also reflects Bithumb's understanding of the competitive landscape in the cryptocurrency exchange market, where user trust and satisfaction are paramount.
The promotional reward error itself occurred during a marketing campaign, which aimed to incentivize user engagement on the platform. However, the system malfunction led to an unusually large amount of Bitcoin being credited to select accounts. Users, upon noticing the unexpected influx of Bitcoin, began selling off these excess funds, which resulted in sharp price swings on the exchange. This situation not only affected individual traders but also posed risks to the overall stability of the market, highlighting the interconnectedness of user actions and market dynamics in cryptocurrency trading.
To put this incident into context, Bithumb has had to navigate numerous operational challenges over the years, similar to many centralized cryptocurrency exchanges. In recent months, the industry has faced increased scrutiny regarding reliability and user trust, particularly following incidents where exchanges experienced technical difficulties or operational failures. For example, in June, Coinbase reported significant account restrictions and took measures to reduce unnecessary freezes by improving its machine-learning systems and internal infrastructure. This suggests a broader trend within the industry, where exchanges are under pressure to improve operational efficiency and user experience.
Moreover, the challenges faced by Bithumb are not isolated. During the market sell-off on October 10, Binance users reported similar technical difficulties that hindered traders from closing positions at critical moments. While Binance attributed the failures to broader market conditions, the incident raised questions about the robustness of trading systems on centralized exchanges. In response, Binance issued approximately $728 million in compensation to affected users, further illustrating the industry's ongoing struggles with operational reliability.
As cryptocurrency trading becomes increasingly mainstream, exchanges like Bithumb must prioritize technical stability and user trust. The incident not only reflects the operational challenges that centralized exchanges face but also serves as a reminder of the importance of transparency and effective communication with users during crises. Bithumb's handling of the reward error could serve as a case study for other exchanges, demonstrating the significance of swift action, comprehensive compensation measures, and clear communication to maintain user confidence.
Looking ahead, Bithumb's proactive measures may help to solidify its reputation in a competitive market. The exchange's commitment to rectifying the error and compensating affected users could enhance its standing among traders, particularly in South Korea's dynamic cryptocurrency landscape. As the industry continues to evolve, exchanges will need to adopt best practices to navigate operational challenges and ensure a secure trading environment for their users.
In conclusion, Bithumb's recovery of 99.7% of the excess Bitcoin and its subsequent compensation plan illustrate a strong commitment to operational integrity and user satisfaction. The incident not only highlights the complexities faced by centralized exchanges but also underscores the necessity for ongoing improvements in technology and customer service. As the cryptocurrency market matures, exchanges that prioritize user trust and effective crisis management will likely emerge as leaders in an increasingly competitive space.