Bithumb, the South Korean cryptocurrency exchange, has filed a court request to freeze assets connected to seven bitcoin that users have not returned following a significant payout error in February. The exchange is pursuing legal action after attempts to recover the mistakenly distributed funds left a small but unresolved balance outstanding. The case centers on whether users who benefited from the error are legally obligated to return the assets.
The incident occurred on February 6, when exchange staff accidentally entered the currency code “BTC” instead of “KRW” while setting up a promotional event. The error resulted in approximately 620,000 bitcoin being credited to users, a sum valued at more than $40 billion at the time. The scale of the mistake was substantial, exposing the exchange to enormous potential losses before action was taken.
Before Bithumb was able to freeze the affected accounts, users had already sold around 1,788 BTC. The exchange moved quickly to halt further transactions and began the process of recovering the mistakenly credited funds. While the majority of the bitcoin was successfully clawed back, a portion remained in the hands of users who did not return the assets voluntarily.
As of the time of the court filing, approximately 12.3 billion won, equivalent to around $8.3 million, had remained outstanding following initial recovery efforts. That figure has since been reduced, with the unresolved amount now standing at seven bitcoin. Bithumb is now seeking judicial intervention to compel the return of these remaining funds.
Under Korean law, individuals who receive assets through error are required to return them under unjust enrichment provisions. These rules establish that a party cannot legally retain a financial benefit received without proper cause. Bithumb is relying on this legal framework to support its asset freeze request and broader recovery efforts.
Originally reported by CoinDesk.
