Data-entry Error Produces 620,000 Ghost Coins at Bithumb, Prompting Regulatory Action

A data-entry mistake inflated Bithumb’s internal ledger to 620,000 BTC, triggering regulator action, compensation plans, and a new customer-protection fund.

Rich by Coin

2026-02-08

South Korea’s cryptocurrency exchange Bithumb disclosed that a data-entry error caused the internal ledger to show 620,000 Bitcoin in circulation, far exceeding its actual holdings. Of the misissued coins, 618,214 (99.7%) were recovered before any trading. Among the 1,786 that had already been sold, about 93% were recovered. The incident originated when, during a rewards payout to 695 event participants on December 6, the system incorrectly credited 2,000 Bitcoins instead of 2,000 won per person, inflating the internal balance to levels that far surpassed actual holdings.

This misentry meant the exchange’s internal circulation showed far more coins than it actually possessed, with the total misissued amount exceeding the pre-incident internal circulation by more than 13 times. This event highlights a fundamental vulnerability in centralized exchanges that settle trades on internal ledgers rather than on-chain transfers, enabling rapid movement within the system while making discrepancies harder to detect until reconciliation. Financial authorities, including the Financial Services Commission (FSC), the Financial Intelligence Unit (FIU) and the Financial Supervisory Service (FSS), convened an emergency meeting on February 7 to review the cause and response and to consider measures to prevent recurrence. Bithumb established a dedicated incident-response team and proposed to fully compensate customers facing losses, including covering the shortfall and an additional 10%, plus a 20,000 won payment to all users who accessed the platform during the incident, and the company plans to set up a 100 billion won customer-protection fund for future readiness.

Separately, authorities are pursuing broader reforms under the virtual asset framework, including enhancements to external verification of holdings and potential measures to codify no-fault liability for custodians in the event of computer errors that lead to losses. These steps aim to restore trust in centralized exchanges and strengthen customer protections across the market.