Bithumb's Airdrop Blunder Triggers Bitcoin's Flash Crash
By John Nada·Feb 6, 2026·2 min read
Bithumb's accidental airdrop of 2,000 BTC caused Bitcoin's price to crash to $55,000, highlighting vulnerabilities in crypto exchanges.
Bitcoin plummeted to $55,000 on South Korea's Bithumb exchange after a significant internal error mistakenly credited users with 2,000 BTC each. This incident, occurring on February 6, 2026, stemmed from what Bithumb described as a reward distribution mix-up, where users were meant to receive a small reward of 2,000 Korean won, approximately $1.50, but instead saw phantom balances appear in their accounts.
As users rushed to sell their inflated BTC holdings, the selloff drove prices sharply down, creating a disconnect of 15.8% compared to other exchanges. At one point, Bitcoin traded at 81 million Korean won, or $55,000, while prices on other platforms remained relatively stable. Notably, no actual Bitcoin was transferred on-chain; the inflated balances only existed in Bithumb's internal ledger.
Bithumb quickly identified the abnormal transactions through its internal controls and restricted trading in the affected accounts. Prices normalized within about five minutes, and the exchange's liquidation prevention system functioned correctly, avoiding any cascading forced liquidations that could have exacerbated the situation. The company assured users that the error was not due to an external hack or security breach, emphasizing that customer assets remained secure.
This incident raises significant questions about internal controls and risk management within cryptocurrency exchanges. The rapid response from Bithumb likely mitigated broader market impacts, but it also highlights the precarious nature of trading in a space where mistakes can lead to dramatic price swings. Given the volatility of Bitcoin, such blunders could have far-reaching implications if not managed properly.
In conclusion, Bithumb's mishap serves as a stark reminder of the vulnerabilities in the crypto trading environment. The incident not only affected Bitcoin's price on Bithumb but also showcases the importance of robust internal controls in maintaining market stability. Exchanges must continually refine their processes to prevent similar occurrences in the future.