South Korean cryptocurrency exchange Bithumb has won two first-instance lawsuits seeking the return of proceeds from Bitcoin mistakenly credited to users during a February promotional campaign.
The Seoul Central District Court ruled in Bithumb’s favor in two separate cases this week. One judgment ordered a user to return about 194 million won, while another involved a claim of roughly 5 million won. Together, the two rulings c over nearly 199 million won, or about $144,000.
The cases stem from one of the crypto industry’s largest operational errors this year. Bithumb mistakenly credited about 620,000 Bitcoin to customers instead of 620,000 Korean won during a promotional event.
The error exposed weaknesses in exchange controls
Bithumb identified the mistake within minutes and restricted trading and withdrawals for affected accounts. The exchange ultimately recovered about 99.7% of the incorrectly credited Bitcoin.
However, some customers had already sold Bitcoin before the restrictions took effect. Bithumb then pursued legal action against users who did not return the proceeds from those sales.
The exchange filed four civil lawsuits in March. The two cases decided this week represent the first court victories in that recovery effort.
Two claims remain pending
The remaining lawsuits involve claims of approximately 14.8 million won and 500 million won. The outcomes could further determine how South Korean courts treat users who profit from assets mistakenly credited by cryptocurrency exchanges.
The February incident also prompted scrutiny from South Korean financial authorities. Regulators investigated Bithumb’s internal controls after the error briefly caused a sharp Bitcoin price disruption on its platform.
The court victories give Bithumb stronger legal footing as it continues efforts to rec over funds from the incident. They also highlight the financial and legal consequences exchanges can face when operational controls fail, even when most mistakenly distributed assets are recovered quickly.
