South Korean crypto exchange Bithumb has reportedly secured its first-instance court wins in two of four lawsuits aimed at recovering money from users who sold Bitcoin that was mistakenly credited to their accounts. The decisions, handed down by the Seoul Central District Court, mark another step in the exchange’s attempt to unwind a high-profile accounting error from February 2026.
According to a report by Chosun Biz, the court ruled in favor of Bithumb on Wednesday and Thursday in two separate cases. One decision covered a claim of 5 million won (about $3,600), while the other involved 194 million won (about $140,000). Two additional lawsuits—seeking roughly 14.8 million won (about $10,700) and 500 million won (about $362,000)—remain pending.
Key takeaways
- Bithumb won first-instance rulings in two lawsuits over alleged unjust enrichment tied to mistakenly credited Bitcoin balances.
- The court decisions relate to claims of 5 million won and 194 million won, while two other cases are still before the courts.
- Both cases reportedly proceeded through service by public notice because the exchange could not deliver documents to defendants via standard methods.
- The rulings support Bithumb’s broader recovery effort following its Feb. 6 promotional error involving 620,000 BTC.
- Separately, South Korea’s Financial Supervisory Service (FSS) has begun sanctions-related steps over the incident, though no final penalty has been announced.
Court wins follow Bithumb’s February crediting mistake
The dispute traces back to Bithumb’s February 6, 2026 promotional event, when the exchange intended to distribute rewards denominated in Korean won to a group of users. Cointelegraph previously reported that Bithumb confirmed the error after abnormal Bitcoin trades emerged following the promotion. The company said an employee mistakenly selected Bitcoin as the payment unit instead of Korean won, and credited customer accounts with 620,000 BTC.
At the time of the incident, the mistakenly credited Bitcoin was valued at more than $40 billion, according to the earlier reporting. Even though the amount was enormous on paper, Bithumb took steps to stop the fallout from spreading. Cointelegraph reported that Bithumb later stated it recovered 618,212 BTC (about 99.7% of the erroneously credited amount). However, some users had already converted part of the credited balances by selling 1,788 BTC before Bithumb froze the impacted accounts.
What the lawsuits are trying to recover
Rather than focusing exclusively on returning Bitcoin, the lawsuits reportedly sought cash proceeds derived from users’ sales of the credited funds. In March, Bithumb filed four unjust enrichment lawsuits against users who sold the mistakenly credited Bitcoin and did not return the proceeds, according to the earlier Cointelegraph coverage.
Chosun Biz’s latest report indicates that two cases have now reached first-instance outcomes favorable to Bithumb. The decisions cover different amounts—5 million won and 194 million won—suggesting the court is addressing specific user-by-user claims rather than issuing a single consolidated ruling for the entire promotional error.
The court also reportedly handled notice service via public notice in both cases. This occurred because standard methods for delivering documents were unsuccessful, meaning the procedural pathway relied on court-permitted service when defendants could not be reached through ordinary delivery attempts.
Bigger pressure on Bithumb from regulators
While the civil litigation moves through the courts, the exchange has also faced scrutiny from South Korea’s financial regulator. Cointelegraph previously reported that the Financial Supervisory Service (FSS) investigated Bithumb over the February 6 incident—specifically how the exchange could end up crediting customers with Bitcoin it did not hold.
In that earlier coverage, it was reported that the FSS sent Bithumb an inspection opinion in early August, formally triggering sanctions proceedings. However, as of the time Cointelegraph reached out for an update, there was no announced final penalty. Cointelegraph said it approached the Financial Services Commission (FSC) for additional information but did not receive a response by publication.
The combination of civil court actions and the regulator’s sanctions track is notable for investors and users because it underscores how operational mistakes in crypto market infrastructure can escalate into both contractual/legal disputes and formal oversight measures. Even if Bithumb ultimately recovers most of the misplaced assets, authorities can still assess whether internal controls, monitoring systems, and payment/crediting processes were adequate.
Other legal and compliance challenges add complexity
The Bitcoin crediting error is not the only legal pressure Bithumb has encountered this year. Cointelegraph reported that South Korean police raided Bithumb’s offices in June as part of an unrelated investigation into alleged hiring favoritism involving lawmaker Kim Byung-ki. In addition, Bithumb has been challenging a separate six-month partial business suspension tied to Anti-Money Laundering violations, with a Seoul court temporarily blocking the suspension order in April pending a decision on Bithumb’s challenge.
Against that backdrop, the outcome of the user recovery lawsuits may influence how Bithumb manages risk and customer-facing processes going forward. A pattern of first-instance wins could strengthen the exchange’s position in remaining pending cases, while any reversals on appeal would likely reignite uncertainty around how these errors are treated legally and practically.
Readers should watch next for what happens in the two remaining lawsuits still pending, as well as whether the FSS sanctions process concludes with a specific penalty or additional guidance. The resolution of these cases will also matter for broader market confidence in exchange internal controls, especially in a jurisdiction where regulators have shown willingness to pursue sanctions after operational failures.
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