South Korean Exchange Bithumb Secures Court Victories in Bitcoin Crediting Error Lawsuits
In two separate legal proceedings, South Korean digital currency platform Bithumb has obtained favorable first-instance court decisions against customers who liquidated Bitcoin erroneously credited during a $40 billion mishap
According to reports, South Korean digital asset trading platform Bithumb has successfully obtained favorable initial court judgments in a pair of legal cases brought against platform users in an attempt to reclaim money generated from Bitcoin that was erroneously added to customer accounts.
On Wednesday and Thursday, the Seoul Central District Court issued rulings in favor of Bithumb in two out of four total lawsuits the exchange has filed against customers who liquidated Bitcoin that had been mistakenly deposited into their trading accounts, as reported by Chosun Biz.
The court decision rendered on Thursday involved a legal claim seeking recovery of 194 million won ($140,000), whereas the Wednesday judgment addressed a claim worth 5 million won ($3,600). Additional lawsuits requesting approximately 14.8 million won ($10,700) and 500 million won ($362,000) are still awaiting court decisions.
In both instances, legal proceedings moved forward through service by public notice due to the fact that court documentation could not be successfully delivered to the defendants using standard delivery procedures, according to the report.
These reported court decisions represent progress in Bithumb's campaign to reclaim assets stemming from its February mistake, during which the cryptocurrency exchange erroneously deposited 620,000 BTC into user accounts, representing a value exceeding $40 billion at that point in time.
Bithumb goes after Bitcoin sale proceeds
According to Bithumb, the mistake took place during a marketing promotion on Feb. 6, 2026, when the platform intended to allocate 620,000 won, equivalent to approximately $420 at that time, as incentive payments to 249 platform users. A staff member incorrectly chose Bitcoin rather than Korean won as the denomination for the payment and deposited 620,000 BTC into customer wallets.
Following the incident, the exchange reported that it successfully retrieved 618,212 BTC, representing 99.7% of the total amount that was mistakenly credited. Nevertheless, certain users had already liquidated 1,788 BTC worth of the erroneously credited funds before Bithumb implemented account freezes on the impacted users.
In March, Bithumb initiated four lawsuits based on unjust enrichment principles against platform users who had sold the Bitcoin that was mistakenly credited and failed to return the resulting funds. The exchange was reportedly pursuing the cash value from those transactions instead of seeking Bitcoin replacement.
FSS begins sanctions process over Bithumb error
The Financial Supervisory Service (FSS) of South Korea launched an investigation into Bithumb regarding the Feb. 6 Bitcoin crediting mistake, with particular attention to understanding how the trading platform could credit users with Bitcoin that was not actually in the exchange's possession. According to reports, the regulatory body delivered an inspection opinion to Bithumb in early August, officially initiating sanctions procedures, though no conclusive penalty has been publicly disclosed to date.
Cointelegraph contacted South Korea's Financial Services Commission (FSC), the oversight body responsible for the FSS, seeking current information regarding the ongoing investigation and possible sanctions facing Bithumb but had not received any response at the time this article was published.
Throughout this year, Bithumb has encountered additional legal challenges beyond this incident. In June, South Korean law enforcement authorities conducted raids on the company's business premises as part of a separate investigation examining alleged preferential hiring practices connected to lawmaker Kim Byung-ki, while simultaneously the exchange is contesting a different six-month partial operational suspension imposed due to Anti-Money Laundering regulation violations. In April, a Seoul court granted a stay of the suspension while Bithumb's legal challenge proceeds through the judicial system.