Bithumb Seeks Court Order Freeze 7 BTC
Bithumb Seeks Court Order Freeze 7 BTC
Bithumb seeks court order freeze after users refuse to return erroneous payout. The South Korean exchange is taking legal action to recover 7 bitcoins.
Bithumb's Erroneous Payment Incident
On February 6, a Bithumb employee mistakenly entered 'BTC' instead of 'KRW' in a promotion, crediting 620,000 bitcoin to 249 winners. This error resulted in approximately $40 billion in assets being credited to the winners' accounts.
Consequences of the Error
Some users took advantage of the situation, selling around 1,788 BTC before Bithumb could freeze the accounts involved. The massive sales pushed the price of the BTC/KRW pair down to around $54,000 per unit.
Recovery Efforts and Legal Action
Bithumb acted swiftly to reverse the credits and recover most of the sold coins. However, around 12.3 billion won (approximately $8.3 million) remained unreturned after the first few days. The exchange is now seeking a court order to freeze the remaining 7 bitcoins.
South Korean Laws and Unjust Enrichment
According to South Korean laws, recipients of assets received without cause are obliged to return them. If the coins have already been sold, users could be forced to repurchase them at the current market price to settle the debt.
Key Takeaways
- Bithumb is seeking a court order to freeze 7 bitcoins after users refused to return an erroneous payout.
- The incident was triggered by a single human error, resulting in approximately $40 billion in assets being credited to winners' accounts.
- The exchange has recovered most of the sold coins, but around $8.3 million remains unreturned.
- Bithumb is the second-largest exchange in South Korea, with a daily trading volume of $388 million.
Frequently Asked Questions
What is the current status of the recovered funds?
Bithumb has recovered most of the sold coins, but around 7 bitcoins remain unreturned, valued at approximately $8 million.
What are the implications of South Korean laws on this incident?
According to South Korean laws, recipients of assets received without cause are obliged to return them, and users could be forced to repurchase the coins at the current market price to settle the debt.
