Costly Bitcoin bug escalates as Bithumb targets disapproving users in court: Report

After recovering most of the assets, Bithumb is now taking legal action against a small group of users who continue to resist payment.

South Korean cryptocurrency exchange Bithumb has moved to seek court approval to freeze 7 bitcoins that have not been returned after a payment error occurred earlier this year.

The dispute escalated after a small number of users refused to return the money.

The legal way

According to the latest report by local media, “Chosun Biz”, Bithumb has done just that He started Temporary attachment, a legal step that allows assets to be temporarily locked down before a formal civil lawsuit is filed. The move comes after an incident in February where a South Korean cryptocurrency exchange mistakenly distributed Bitcoin instead of Korean Won (KRW) during a promotional event.

At the time, Bithumb intended to send a total of 620,000 won to 249 participants, with individual payouts ranging between 2,000 and 50,000 won. However, due to an input error, the system processed the payments in BTC, which… Cause An accidental transfer of approximately 620 thousand bitcoins, a number that translates into tens of trillions of won.

Although the exchange reversed the transactions within minutes, it was unable to fully recover the distributed assets, as some recipients had already sold Bitcoin or used it to buy other digital assets. While the company has since contacted affected users individually and recovered most of the funds issued in error, a small group has refused to return the remaining portion, leading to the current legal escalation.

Industry sources cited by local media said some users argued that the error arose from the exchange and therefore they should not be obligated to return assets. However, legal experts believe the case is a case of illicit enrichment, and noted that the recipients should return the assets they received by mistake.

Spending money may backfire

Authorities also noted that individuals who converted bitcoin into cash could face greater complications if legal proceedings go ahead. At the time of the incident, Bitcoin prices on Bithumb briefly dropped to the 80 million won range, while current prices are much higher, around 105 million won.

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This creates a potential burden on users who previously sold assets at lower prices, as they may now need to buy back Bitcoin at a higher market price to comply with any court-ordered return.