Most expensive typo in crypto history? $44 billion sent by mistake

An unusual typo at South Korean cryptocurrency exchange Bithumb sent shockwaves through the digital asset market on Friday, February 6, after the firm accidentally distributed over $44 billion in Bitcoin to users.

Considered as one of the most expensive types of financial history, Bithumb initially announced the 2,000 Korean won (approximately $1.40) as giveaways to users who participated in a promotional event.

However, instead of Korean won, the system error distributed 2000 bitcoins to the lucky winners, worth roughly $140 million according to current prices.

Around 695 people received the bitcoins following the error.

The exchange hastened to address the situation. After 35 minutes of incorrect distribution of the cryptocurrency, Bithumb suspended trading and withdrawal services associated with these accounts. As of Saturday, the company said it had recovered 99.7% of the 620,000 incorrect Bitcoins.

However, the exchange made it clear that the error was not due to any external hacking or security breaches, guaranteeing that all customer assets are kept safe.

“We would like to make it clear that this incident is unrelated to external hacking or security breaches,” Bithumb stated.

For a brief moment, the market showed an immediate impact.

On Bithumb’s platform, Bitcoin prices plummeted 17% as some recipients sold their unexpected windfall, creating a localised flash crash.

The incident has attracted a lot of scrutiny and concern from South Korean regulators. 

The Financial Services Commission has noted that the mistake triggered a concern that “exposed the vulnerabilities and risks of virtual assets.”

The exchange may also face on-site inspections by regulators, including Bithumb and possibly other crypto exchanges.