The incident occurred at Bithumb, South Korea's second-largest cryptocurrency exchange, on 6/2, leading to tens of millions of USD in "virtual" bitcoin (BTC) appearing in hundreds of user accounts. The error, which involved distributing 2,000 BTC instead of 2,000 won during an airdrop, caused a temporary price anomaly on the exchange's BTC/KRW trading pair. By market value at the end of 6/2, the mistakenly distributed BTC was valued at approximately 140 million USD.

Bithumb reported detecting abnormal transactions via its internal control system and promptly restricted trading for affected accounts. Although the cryptocurrency appeared in user balances, no actual BTC was transferred on the blockchain; it existed solely within Bithumb's internal ledger. The exchange confirmed that platform prices stabilized within approximately 5 minutes. Its liquidation prevention system operated as intended, successfully averting cascading liquidations stemming from the price volatility. Bithumb affirmed that the incident was not due to a hack or external security flaw, assuring customers that their assets remained secure.

The incident unfolded during a Bithumb airdrop program. Airdrops are a common practice where exchanges distribute free tokens or coins to users, often to encourage platform engagement or promote new projects. Users who unexpectedly found huge balances quickly tried to sell, triggering a sharp sell-off on Bithumb's BTC/KRW pair. This caused the price to plummet by 15,8% compared to other exchanges. At one point, bitcoin traded at 55.000 USD on Bithumb, while prices on other markets remained stable.

Bitcoin and other cryptocurrency prices often vary across exchanges because the market is fragmented, with each platform operating as a distinct marketplace. Prices on individual exchanges are determined by internal supply and demand, influenced by participant numbers, order book depth, and real-time liquidity. An imbalance in buying and selling pressure can cause temporary price discrepancies compared to the broader market.

Currency and regional factors also contribute to price differences. Exchanges operating with local currencies are often influenced by exchange rates, capital controls, and domestic fund flows. These barriers hinder arbitrage, a crucial mechanism for equalizing prices across markets. Restrictions on capital flow and transaction speed present another challenge. Fiat currency deposits, withdrawals, or asset transfers between exchanges are not instantaneous, preventing immediate price equalization. Additionally, each exchange implements distinct risk management protocols, transaction fees, and internal regulations, which influence investor trading behavior. Collectively, these factors contribute to price variations across exchanges, even when reflecting a single global asset.

The Bithumb cryptocurrency exchange logo is positioned alongside the emblems for bitcoin and ether. Photo: Primakov/Shutterstock

Looking ahead, in late 9/2025, South Korean media reported Bithumb's intention to participate in a pilot program for a crypto asset exchange in Vietnam. The exchange had been preparing for this initiative for months. Financial and cryptocurrency experts speculate that Bithumb plans to engage through equity investments alongside Vietnamese financial institutions and banks.