Data Entry Error at Bithumb Creates 620,000 'Ghost Bitcoin,' Triggers Regulatory Investigation

A routine promotional campaign at Bithumb, one of South Korea's largest cryptocurrency exchanges, resulted in a significant regulatory incident after a data entry mistake credited users with approximately 620,000 Bitcoin that didn't exist.

The exchange had intended to distribute small amounts of Korean won—roughly 2,000 won ($1.37) per person—as part of a reward program in early February 2026. Instead, an input error caused the system to credit Bitcoin rather than fiat currency. The erroneous balances appeared in user accounts for approximately 20 minutes, during which traders executed transactions worth around 1,788 BTC before staff froze the affected accounts.

The incident highlighted vulnerabilities in how centralized exchanges manage internal ledgers. Unlike decentralized platforms, these exchanges update user balances in private databases rather than settling every transaction on the blockchain in real time. Regulatory filings revealed that Bithumb held only 175 BTC of its own reserves in Q3 2025, while managing over 42,000 BTC for customers.

South Korea's Financial Supervisory Service launched on-site inspections, questioning how the exchange allowed trades based on faulty internal data. The agency indicated that existing regulations may inadequately address internal system oversight. Bithumb reportedly recovered 93% of the lost value, absorbing remaining shortfalls with its own funds.

The incident has prompted industry-wide audits and discussions about implementing stricter controls, including multi-level approval processes and more frequent reconciliation between internal ledgers and actual reserves.