- Bithumb seeks a court asset freeze to recover 7 BTC still unreturned after a payout error.
- Mistaken Bitcoin transfer left 12.3B won unrecovered despite rapid reversal.
- Legal pressure builds as users who kept funds face unjust enrichment claims.
South Korean crypto exchange Bithumb has moved to secure court-backed asset freezes as it seeks to recover a portion of Bitcoin mistakenly distributed during a promotional event earlier this year. The action follows months of recovery efforts after an operational error led to unintended payouts, leaving a small but huge amount of digital assets still unreturned.
Bithumb recently filed for provisional seizure orders to recover seven Bitcoins that remain outstanding from the incident, according to a report by Chosun Biz. At the time of the error, the assets were valued at approximately 700 million won. A provisional seizure allows a court to temporarily freeze assets before a formal lawsuit proceeds, signaling that the exchange is preparing to pursue civil litigation against recipients who have not returned the funds.
The error occurred on February 6, when Bithumb intended to distribute a total of 620,000 won to 249 event winners. However, an input error sent Bitcoin instead of Korean currency, resulting in a total misallocation of 620,000 Bitcoins. Although the exchange reversed the transactions within minutes, some recipients had already transferred or liquidated the assets.
Bithumb reported that it recovered the large majority of the funds on the same day, but approximately 12.3 billion won worth of Bitcoin initially remained unreturned. Since then, the exchange has contacted users individually, recovering most of the outstanding balance, though a small group of recipients has declined to comply.
Legal Basis and Financial Implications
Under South Korean civil law, assets received without legal entitlement are generally subject to return under the principle of unjust enrichment. Legal experts have indicated that recipients who fail to return the Bitcoin are likely to face unfavorable outcomes if the case proceeds in court.
crossorigin=”anonymous”>Authorities have also warned of financial risks for those who converted the assets. At the time of the incident, Bitcoin prices on Bithumb dropped to the low 80 million won range. With current prices near 105 million won, individuals who sold the assets earlier may need to repurchase them at higher prices to meet potential repayment obligations.
The incident has drawn attention from regulators and industry observers, particularly regarding operational controls within digital asset platforms. Bithumb’s decision to pursue legal recovery highlights the challenges exchanges face when errors intersect with the irreversible nature of blockchain transactions.
Related: South Korea Slaps Bithumb With $27M Fine and Six-Month Business Suspension
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
