Bithumb Initiates Legal Action to Recover Missing Bitcoin from Distribution Error
- South Korean exchange Bithumb is pursuing legal action to recover 7 Bitcoin after a payout error in February mistakenly distributed 620,000 BTC.
- The erroneous transfer was valued at approximately 62 trillion Korean won (around $42 billion) before being reversed.
- Bithumb successfully recovered 99.7% of the funds on the same day, with only 1,788 BTC remaining unreturned.
- Legal proceedings include a provisional attachment to freeze assets of users who have not returned the mistakenly received funds.
- Under South Korean law, recipients of mistakenly transferred assets may face legal obligations to return them due to unjust enrichment.
Following the incident, Bithumb has contacted affected users and recovered most sold funds, but some refuse to return remaining amounts, arguing the exchange’s error absolves them of responsibility. This case highlights significant legal implications for crypto exchanges and their clients regarding asset mismanagement.
Bithumb’s recovery efforts are crucial as they seek to reclaim the last 7 Bitcoin, part of a larger sum that was mishandled during a promotional event earlier this year. (Source)
