Legal action has been initiated by Bithumb, a prominent South Korean cryptocurrency exchange, to reclaim 7 Bitcoin linked to a payout error. This incident occurred during a promotional event in February, where the exchange mistakenly distributed a staggering 620,000 BTC instead of the intended 620,000 won (approximately $420) to 249 winners.
The exchange's provisional attachment aims to freeze assets of users who have not returned the erroneously received funds. While Bithumb managed to recover 99.7% of the distributed Bitcoin on the same day of the incident, a small fraction remains unreturned, with some recipients claiming they are not liable for repayment.
Under South Korean law, assets received by mistake are generally deemed as unjust enrichment, necessitating their return. The ongoing legal proceedings may lead to unfavorable consequences for those who refuse to comply. In a related regulatory move, South Korea's Financial Services Commission has mandated crypto exchanges to reconcile their asset holdings every five minutes to enhance error detection capabilities.