Bithumb, a cryptocurrency exchange in South Korea, is facing a legal dilemma regarding the recovery of 13 billion won worth of cryptocurrency that was incorrectly distributed due to a system error. A portion of this amount, roughly 3 billion won, has already been withdrawn or converted to cash by recipients, making legal action inevitable. Bithumb is currently attempting to contact those who received the wrongly allocated Bitcoin in hopes of recovering the funds, while also considering possible legal measures including civil suits for unjust enrichment.

The potential for civil litigation under South Korean law is significant, as it stipulates that any profits gained without lawful cause must be returned. In this case, recipients who received substantial amounts of Bitcoin under an event with designated prize amounts likely recognized these funds as ‘unjust enrichment’, prompting Bithumb to pursue claims for recovery. Should Bithumb succeed in such a lawsuit, recipients may not only be obligated to return the value of the Bitcoin they received, but they may also be responsible for Bithumb's legal fees, adding a financial burden to those who benefited from the error.

Regarding potential criminal charges, the atmosphere is less favorable for prosecution due to a past ruling by the Supreme Court of South Korea, which indicated that cryptocurrencies do not receive the same legal protections as traditional currency. Previous rulings have concluded that unauthorized transfers of misallocated funds do not constitute embezzlement. However, with shifting market conditions and increasing international acceptance of cryptocurrencies, experts speculate that future legal interpretations may evolve, potentially altering how such cases are handled, especially against the backdrop of changing regulations in the U.S. and initiatives to integrate stablecoins into payment systems.