Bithumb Wins Two Lawsuits Over Mistaken Bitcoin Credits
South Korean cryptocurrency exchange Bithumb has reportedly won two first-instance lawsuits seeking to recover money from users who sold Bitcoin mistakenly credited to their accounts earlier this year.
The Seoul Central District Court ruled in Bithumb's favor in two separate cases on Wednesday and Thursday, according to a report from South Korean outlet Chosun Biz. The rulings represent an important step in the exchange's efforts to recover funds following one of the largest cryptocurrency accounting errors reported this year.
The cases are connected to a February incident in which Bithumb mistakenly credited customers with 620,000 BTC, worth more than $40 billion at the time.
Court Rules in Bithumb's Favor
The latest rulings involved relatively small recovery claims compared with the scale of the original error.
Thursday's case concerned approximately 194 million Korean won ($140,000), while Wednesday's ruling involved a claim of around 5 million won ($3,600).
Two additional lawsuits remain pending. Those cases involve claims of approximately 14.8 million won ($10,700) and 500 million won ($362,000).
The reported rulings were issued through service by public notice after court documents could not be delivered to the defendants through ordinary procedures.
Read the Chosun Biz report on the rulings
How Bithumb's $40 Billion Bitcoin Error Happened
The incident occurred on February 6, 2026, during a promotional event.
Bithumb intended to distribute approximately 620,000 Korean won in rewards to 249 users. However, an employee reportedly selected Bitcoin instead of Korean won as the payment unit.
As a result, customer accounts were credited with approximately 620,000 BTC rather than the intended cash reward.
The exchange quickly moved to freeze affected accounts and recover the incorrectly credited assets.
Bithumb subsequently reported that it recovered approximately 618,212 BTC, representing roughly 99.7% of the mistakenly distributed amount.
However, some customers had already sold part of their balances before the exchange could intervene.
Bithumb Seeks Proceeds From Bitcoin Sales
According to reports, approximately 1,788 BTC was sold before the affected accounts were frozen.
Bithumb filed four lawsuits in March against users who allegedly sold the mistakenly credited Bitcoin and did not return the resulting proceeds.
Rather than seeking the return of the Bitcoin itself, the exchange reportedly sought to recover the cash proceeds generated from the sales.
The latest court decisions could strengthen Bithumb's position in the remaining cases, although the reported first-instance rulings may still be subject to appeal.
South Korean Regulator Investigates the Exchange
The Bitcoin crediting error has also attracted regulatory attention in South Korea.
The Financial Supervisory Service (FSS) investigated how Bithumb was able to credit customers with such a large amount of Bitcoin despite the exchange not holding the corresponding amount of BTC.
The regulator reportedly sent Bithumb an inspection opinion earlier this month, beginning the formal sanctions process.
No final penalty had been announced at the time of the report.
The incident could therefore have consequences beyond the lawsuits, particularly around exchange controls, asset accounting, internal procedures and risk management.
Bithumb Faces Broader Regulatory Scrutiny
The Bitcoin crediting incident is not the only regulatory issue facing Bithumb this year.
South Korean authorities have also examined the exchange in connection with other matters, including an unrelated investigation involving alleged hiring favoritism.
Bithumb is additionally challenging a separate six-month partial business suspension related to Anti-Money Laundering compliance issues.
A Seoul court previously stayed the suspension while Bithumb continues its legal challenge.
These developments put additional focus on how South Korean cryptocurrency exchanges manage compliance and operational risks.
Why the Case Matters for Bitcoin Markets
The Bithumb incident highlights the operational risks that can emerge from errors at centralized cryptocurrency exchanges.
A mistaken credit worth tens of billions of dollars can create significant market and legal consequences even when most of the assets are recovered quickly.
For Bitcoin traders, the case also demonstrates why exchanges need robust controls around:
Asset crediting
Promotional campaigns
Internal authorization
Customer balances
Transaction monitoring
Withdrawal controls
Risk management
The fact that customers were able to sell part of the mistakenly credited BTC before the exchange froze their accounts also illustrates how quickly an exchange accounting error can potentially enter the wider market.
Bottom Line
Bithumb has reportedly won two first-instance lawsuits seeking recovery of proceeds from Bitcoin that was mistakenly credited to users during a February promotional error.
The exchange originally intended to distribute 620,000 won in rewards but accidentally credited approximately 620,000 BTC, worth more than $40 billion at the time.
While Bithumb recovered nearly all of the incorrectly distributed Bitcoin, approximately 1,788 BTC was reportedly sold before affected accounts were frozen.
With two lawsuits still pending and South Korean regulators reviewing the incident, the case remains an important development for Bitcoin exchanges, market infrastructure and cryptocurrency regulation.
