South Korean crypto exchange Bithumb has reportedly won two first-instance lawsuits seeking to recover proceeds from users who sold Bitcoin mistakenly credited during its massive February payout error.
The Seoul Central District Court ruled in Bithumb’s favor in claims worth 194 million won ($140,000) and 5 million won ($3,600). Two additional lawsuits seeking roughly $10,700 and $362,000 remain pending.
The cases stem from a Feb. 6 promotional event in which Bithumb intended to distribute 620,000 won in rewards to 249 users, but an employee mistakenly selected Bitcoin as the payment unit, crediting accounts with 620,000 BTC worth more than $40 billion.
Bithumb later recovered 618,212 BTC, or 99.7% of the erroneous credits, but some users had already sold about 1,788 BTC before the exchange froze affected accounts.
The exchange filed unjust enrichment lawsuits to recover the cash proceeds from those sales. Meanwhile, South Korea’s Financial Supervisory Service has begun a sanctions process over the incident, though no final penalty has been announced. $BTC
The Seoul Central District Court ruled in Bithumb’s favor in claims worth 194 million won ($140,000) and 5 million won ($3,600). Two additional lawsuits seeking roughly $10,700 and $362,000 remain pending.
The cases stem from a Feb. 6 promotional event in which Bithumb intended to distribute 620,000 won in rewards to 249 users, but an employee mistakenly selected Bitcoin as the payment unit, crediting accounts with 620,000 BTC worth more than $40 billion.
Bithumb later recovered 618,212 BTC, or 99.7% of the erroneous credits, but some users had already sold about 1,788 BTC before the exchange froze affected accounts.
The exchange filed unjust enrichment lawsuits to recover the cash proceeds from those sales. Meanwhile, South Korea’s Financial Supervisory Service has begun a sanctions process over the incident, though no final penalty has been announced. $BTC