TheBlock
A Seoul court has ruled in favor of Bithumb in one of four unjust enrichment lawsuits the exchange filed against users who sold bitcoin mistakenly credited to their accounts earlier this year. The Seoul Central District Court ordered the defendant to return proceeds from the erroneous credit, local outlet Digital Asset reported Thursday. The case, the second-largest of the four civil suits Bithumb filed in March, involves roughly 194 million Korean won ($140,513); the largest suit targets 500 million won ($362,229).
Why it matters
In February, a Bithumb staff member reportedly input BTC instead of KRW as the unit for a promotional giveaway, accidentally crediting 620,000 BTC, then worth around $43 billion, to hundreds of users. The error briefly drove the BTC-KRW pair on Bithumb's platform down about 15%, before the exchange froze affected accounts. South Korean authorities subsequently opened an investigation into the exchange's internal controls and risk management, a probe that remains open. The Thursday ruling is the first substantive win in Bithumb's recovery effort, a precedent other exchanges will study as they refine their own safeguards around promotional credits.
Market impact
Bithumb separately announced this month it is targeting a 2028 initial public offering. The clawback ruling is a small but concrete signal the exchange can recover funds lost to its own operational error, even as three more unjust enrichment suits, including the largest seeking 500 million won, stay pending. For the broader Korean crypto market, the precedent matters: it tells users that selling mistakenly credited bitcoin is treated as unjust enrichment under Korean civil law, sharpening the legal line between platform error and user profit.
Frequently asked questions
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What was the Bithumb 620,000 BTC fat-finger error?
In February, a Bithumb staff member reportedly input BTC instead of KRW as the unit for a promotional giveaway, accidentally crediting 620,000 BTC (then worth ~$43B) to hundreds of user accounts. The error briefly drove the BTC-KRW pair on Bithumb down about 15% before accounts were frozen.
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How many lawsuits did Bithumb file over the error?
Bithumb filed four unjust enrichment civil suits in March against users who sold the mistakenly credited bitcoin. The Thursday ruling is the first win for the exchange, in the second-largest of the four cases.
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How much is Bithumb trying to recover?
The case Bithumb won on Thursday involves ~194 million won ($140,513) in proceeds. The largest of the four suits targets 500 million won ($362,229). Combined, the suits seek to recover sales proceeds from the miscredited BTC.
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What regulatory action did South Korean authorities take?
Authorities opened an investigation into Bithumb's internal controls and risk management following the February incident, citing what they described as a lack of safeguards to prevent large-scale operational errors. The probe remains open.
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When is Bithumb planning its IPO?
Bithumb announced earlier this month that it is targeting a 2028 initial public offering. The clawback ruling is a small concrete signal the exchange can recover funds lost to its own operational error ahead of that listing.
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