A significant error occurred at Bithumb, a cryptocurrency exchange in South Korea, where the company accidentally distributed over $40 billion worth of bitcoins to its clients. This mistake transformed several users into instant millionaires, although this status was ephemeral, as Bithumb quickly acted to block transactions and recover the misplaced funds. The company reported that the distribution was not due to hacking or any security breach but rather a miscalculation during a reward distribution process.

The incident took place when Bithumb intended to reward their customers with a minor cash incentive of 2,000 won (approximately 2000 pesos). However, a system error resulted in the platform unintentionally transferring vast amounts of bitcoin instead of the planned cash bonus. This blunder caused panic and excitement among the recipients, who momentarily found themselves incredibly wealthy until the reality of the mistake became clear and Bithumb took corrective measures.

In the immediate fallout, Bithumb was able to recover nearly all of the bitcoins mistakenly sent out. The exchange clarified its position, reassuring users that the massive payout was not a result of any security vulnerabilities. This incident raises questions about the protocols within cryptocurrency exchanges concerning reward distributions and highlights the potential volatility and risks associated with digital currencies.