Bithumb's Payout Error: The Recovery of Bitcoin and Legal Obligations

By Patricia Miller

Apr 09, 2026

1 min read

Bithumb seeks to recover seven Bitcoin from an erroneous payout, raising legal questions on unjust enrichment and compensations.

#What Happened with Bithumb's Mistaken Payout

Bithumb, the largest cryptocurrency exchange in South Korea, has begun legal measures to recover seven Bitcoin mistakenly given away during a flawed event payout earlier this year. This issue traces back to February, when a data entry error caused the exchange to mistakenly distribute Bitcoin worth over $40 billion to a vast number of users. Instead of the intended payout of 620,000 won to just 249 clients, Bithumb erroneously distributed the equivalent of 620,000 BTC to 695 users.

The flaw was recognized quickly, within 20 minutes, prompting an immediate halt to all transactions. Bithumb has successfully reclaimed most of the funds by directly reaching out to affected users. However, some recipients have resisted cooperating and returning the mistakenly sent Bitcoin. The leftover seven Bitcoin are currently valued at over $500,000 or approximately 740 million won, reflecting the rise in cryptocurrency values since the occurrence.

#Are the Recipients Obligated to Return the Funds?

Legal experts indicate that those who received the mistakenly sent funds may be legally required to return them based on unjust enrichment principles. This principle asserts that individuals should not benefit at the expense of another without a legal basis for doing so. Additionally, users who have sold the Bitcoin might face difficulties in re-acquiring them if market prices have increased significantly.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.