The South Korean crypto exchange Bithumb officially confirmed that an operational error resulted in an abnormal payment of Bitcoin during a promotion.
The incident caused a brief, yet intense, price distortion on the platform before the markets stabilized in a few minutes.
Bithumb confirms accidental payment in bitcoin
In a statement, Bithumb apologized to users and acknowledged that “… an abnormal amount of Bitcoin was paid to some clients…” during the action, which generated temporary volatility as the beneficiaries sold the asset.
"... The price of Bitcoin fluctuated significantly for a short period because some accounts that received Bitcoin made sales," the exchange stated in a note.
According to Bithumb, its internal monitoring systems quickly detected atypical transactions. The platform responded by restricting the operations of the involved accounts, which helped contain the problem.
"As a result, the market price returned to normal levels in 5 minutes, and the chain liquidation prevention system worked correctly, preventing mass liquidations due to the out-of-standard Bitcoin price," the company reported.
The clarification was released after Bitcoin was traded, for a short time, at a value well below what is practiced globally on Bithumb, raising speculation about the reason for the sudden drop.
Bithumb emphasized that the incident was not caused by a cyber attack or security failure.
"We want to make it clear that this incident is not related to any external invasion or security failure and poses no risks to the protection of the system or customer assets," the exchange declared.
Impact on Bithumb customer funds
The company also assured users that funds remain protected and that the main services continue to operate normally.
"Customer assets remain under secure management, and trading, deposits, and withdrawals are operating normally," the statement says.
According to Bithumb, no customer suffered losses due to the incident. The company reported that it continues to analyze the situation and will release more information if necessary.
"It is understood that this episode did not result in losses or damages to customer assets. We will share all measures taken transparently and take full responsibility to ensure that no customer is harmed," the exchange informed.
The episode highlights how operational failures, even quickly resolved, can cause sharp short-term distortions in cryptocurrency prices, especially on exchanges with liquidity volumes different from the global average.
At the end of the statement, Bithumb apologized again and said it will reinforce internal controls to improve the trading environment.
"Once again, we apologize for any inconvenience caused. We will continue to work to provide a safe and reliable trading environment."
The article Bithumb explains the accidental payment of 2,000 bitcoins: what really happened? was first seen on BeInCrypto Brazil.