Bithumb Faces $43B Bitcoin Error Recovery as Civil Lawsuit Looms

Bithumb, South Korea’s largest crypto exchange, is pursuing recovery of roughly $43 billion in mistakenly issued Bitcoin during a promotional event on December 6, 2025. About 99.7% of the overpayment has been recovered using company funds, per CEO Lee Jae-won. The error, where BTC was mistakenly credited instead of KRW, caused users to dispose of assets before the glitch was contained, prompting civil recovery efforts and scrutiny of criminal liability. Legal experts say unjust enrichment and notice will be key battlegrounds, with prosecutors likely cautious given the exchange’s prompt response and account freezes. Bithumb announced a $20 per-user payment, bonuses for those selling mistakenly low-priced BTC, and zero-fee trading for a week. The incident highlights gaps in oversight and internal controls in South Korea, spurring discussions to cap major shareholders’ stakes and strengthen proof-of-reserves and internal controls under the Virtual Asset User Protection Act.