On Saturday, South Korean cryptocurrency exchange Bithumb acknowledged a technical error that resulted in the accidental distribution of about $44 billion in Bitcoin to a number of users during a promotional event aimed at offering small cash rewards. This glitch was attributed to the failure of the system which mistakenly added approximately 620,000 Bitcoin to the accounts of some clients instead of the intended limited amounts. The incident highlights the vulnerabilities exchanges can face even in planned marketing efforts.

Upon discovering the error, Bithumb was quick to act by restricting trading and withdrawals on the affected accounts within minutes, successfully recovering 99.7% of the distributed assets shortly thereafter. The company assured users that the incident was not caused by an external security breach nor a failure in customer asset protection, but rather was due to an internal operational issue. This statement aims to reinforce confidence among users about the security of their investments on the platform.

The unexpected large balances prompted a rapid sell-off among users on Bithumb, resulting in a temporary drop in the price of Bitcoin on the exchange before it stabilized again. This event underscores ongoing concerns about system reliability and user volatility in cryptocurrency markets, and raises questions about the robustness of operational protocols in handling currency distribution during promotional activities.