Published: February 9, 2026
On February 5–7, 2026, South Korean cryptocurrency exchange Bithumb suffered a high-profile promotional glitch that temporarily credited eligible users with approximately 2,000 BTC (≈ $140–150 million at the time) instead of the intended 2,000 KRW (~$1.45) reward. The error affected participants in a deposit-and-trade promotion, resulting in roughly $9 million in unintended BTC payouts before the platform detected and reversed most erroneous credits.
Bithumb quickly acknowledged the mistake, paused the promotion, and announced it would reimburse affected users 110% of the value they were entitled to receive — a rare full-plus-compensation move intended to restore trust. South Korea’s Financial Services Commission (FSC) and Korea Financial Intelligence Unit (KFIU) launched an immediate probe into potential internal control failures and market-manipulation risks. This article provides a complete timeline, root-cause analysis, compensation details, regulatory response, user impact, and broader lessons for crypto exchanges and traders in 2026.
Timeline of the Bithumb Bitcoin Glitch – February 2026
| Date / Time (KST) | Event | Impact / Platform Response |
|---|---|---|
| Feb 5, 10:00 | Promotion launch: deposit ≥ 100,000 KRW & trade to receive 2,000 KRW reward | Normal start; thousands of users participate |
| Feb 5, ~14:30–16:00 | Glitch activates — system credits ~2,000 BTC instead of 2,000 KRW to qualifying wallets | Users notice massive balances; screenshots spread on X / Telegram |
| Feb 5, 17:20 | Bithumb detects anomaly, pauses promotion & begins reversal of erroneous credits | Most BTC removed within ~45 minutes; ~$9M remains unrecovered initially |
| Feb 6, morning | Official statement: “Technical error during reward processing” — promises 110% compensation | Trust begins to stabilize; some users already transferred BTC |
| Feb 6–7 | FSC & KFIU open formal investigation; Bithumb freezes suspicious withdrawals | Trading volume spikes 300%+ on KRW/BTC pair; price briefly pumps then dumps |
| Feb 8–9 | Compensation process starts (110% of original 2,000 KRW entitlement); full audit promised | Most users reimbursed; remaining cases handled case-by-case |
What Actually Happened: Root Cause & Scale
According to Bithumb’s preliminary internal report and FSC leaks:
- A misconfigured reward script multiplied the KRW amount by the BTC/KRW exchange rate instead of keeping it fixed at 2,000 KRW
- The bug affected users who completed the required deposit + trade volume within a ~90-minute window before detection
- Approximately 4,200–4,800 accounts received erroneous credits (exact number redacted during investigation)
- Gross erroneous payout before reversal: ~2,000–2,100 BTC (≈ $140–150 million at time of glitch)
- After rapid reversal: ~130–150 BTC (~$9–$10.5 million) remained unrecovered (transferred out or already traded
Bithumb stated the glitch was not a hack or exploit — no unauthorized access occurred — but rather a “critical logic error” in the promotional backend.
Compensation Details & Regulatory Response
Bithumb committed to 110% reimbursement of the intended reward (2,000 KRW = ~$1.45 → paid ~2,200 KRW per eligible user), plus:
- Full refund of any trading fees incurred during the glitch window
- One-time 10% bonus trading-fee credit for affected accounts (capped)
- Case-by-case review for users who transferred BTC before reversal (some receiving partial BTC restitution)
South Korean regulators reacted swiftly:
- FSC: Ordered immediate suspension of similar reward promotions across all licensed exchanges
- KFIU: Launched AML/transaction monitoring probe (looking for wash trading or coordinated exploitation)
- Korea Exchange (KRX) & Upbit/Bithumb competitors: Voluntarily paused deposit-match promotions
Market & Price Impact – Short-Term Chaos
XRP price action around the glitch:
- BTC/KRW pair on Bithumb saw +18% flash pump (arbitrage bots buying cheap BTC on other exchanges)
- Global BTC price briefly spiked +1.8% before profit-taking erased gains
- Trading volume on Bithumb surged 300–450% above 30-day average during the 90-minute window
- Altcoins (especially KRW pairs) experienced 5–12% volatility spikes
Longer-term effect: increased scrutiny on promotional mechanics across Korean exchanges → likely permanent reduction in aggressive reward campaigns.
Lessons for Crypto Users & Exchanges in 2026
For users:
- Never transfer or trade erroneously credited funds until official confirmation — many lost reimbursement eligibility
- Screenshot everything (balances, transaction IDs, promotion terms)
- Understand local regulations — Korean FSC can freeze accounts involved in disputed credits
For exchanges:
- Implement multi-layer sanity checks on reward scripts (hard caps, unit conversion validation)
- Real-time monitoring of abnormal balance spikes
- Pre-approve promotion code with third-party security audits
- Clear public communication templates for glitches
Trading & Positioning on Tapbit – February 2026
- Sign Up on Tapbit (0% maker fees)
- Deposit USDT via bank transfer / P2P
- Volatility capture: Monitor KRW pairs for arb opportunities during regional exchange incidents
- Safe haven: Long XAU/USDT perpetuals or stablecoin yields during exchange-specific panic
- Risk control: Max 1–2% account risk per trade; isolated margin; trailing stops on leveraged positions
Conclusion & Lessons for 2026
The Bithumb Bitcoin glitch of February 5–7, 2026 — accidentally crediting users ~2,000 BTC instead of 2,000 KRW — resulted in roughly $9–10.5 million in erroneous payouts before reversal. The exchange’s decision to reimburse 110% of the intended reward, combined with swift regulatory action by the FSC and KFIU, limited long-term brand damage but highlighted persistent risks in promotional logic and real-time monitoring.
For traders and users: always verify credits before moving funds, screenshot everything, and understand local compliance rules. For exchanges: multi-layer validation, real-time anomaly detection, and audited promotion code are now table stakes.
Trade safely & monitor exchange news on Tapbit:
Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. Exchange incidents and regulatory actions are unpredictable. This article is for informational purposes only and does not constitute investment, legal or financial advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
