- Bithumb recovers millions after Bitcoin error, compensates affected users quickly.
- Exchange offers $15 compensation and waives trading fees for users.
- Bithumb restores confidence with swift actions and a proactive compensation plan.
South Korean cryptocurrency exchange Bithumb recently resolved a significant issue where some users were mistakenly credited with excessive amounts of Bitcoin during a promotional event. The error, which occurred on Friday, resulted in sharp price fluctuations as affected users began selling the overpaid Bitcoin. However, Bithumb quickly acted, recovering 99.7% of the excess Bitcoin on the same day. The remaining 0.3%, approximately 1,788 BTC, had already been sold, and to prevent any disruption, the exchange covered this amount using company funds.
Bithumb’s Quick Response to Stabilize the Market
In a statement, Bithumb reassured its customers that all Bitcoin holdings were fully matched with user deposits. Most of the excess Bitcoin was retrieved directly from affected accounts, while the portion that had already been liquidated was reimbursed with funds from the company’s reserves. The exchange clarified that the incident was not a result of a hack and emphasized that no customer assets were lost during the incident. Deposits and withdrawals continued without interruption.
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Bithumb’s quick response helped stabilize the platform and prevent wider liquidations. As a result, the exchange announced a compensation plan for users impacted by the error. Customers who were logged in during the incident will receive 20,000 Korean won ($15) each. Those who sold Bitcoin at unfavorable prices during the disruption will be fully reimbursed for their sales, along with an additional 10% compensation. Additionally, Bithumb will waive trading fees for all markets for a week, starting on Monday.
Bithumb’s Swift Action and User Support Measures
Bithumb’s handling of the situation highlights the importance of rapid response in maintaining customer trust. In a time when centralized exchanges face operational challenges, Bithumb’s efforts to resolve the issue quickly and fairly show their commitment to their users. The company’s transparency in addressing the situation and its proactive compensation plan demonstrate their dedication to maintaining a secure and reliable platform.
The exchange’s swift recovery is a reminder of the technical challenges faced by cryptocurrency platforms. Other exchanges, such as Binance, have also experienced similar issues in the past, including a major sell-off in October 2022. In that case, Binance compensated users with $728 million. With these compensation measures, Bithumb seeks to restore user confidence and continue as a leading player in the competitive South Korean cryptocurrency market.
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