The Financial Supervisory Service has announced plans to sue Bithumb users who hold onto Bitcoin mistakenly distributed in a massive $40 billion error, emphasizing that it is a clear case of unjust enrichment. The incident occurred when Bithumb, a South Korean crypto exchange, incorrectly sent Bitcoin instead of Korean won during a promotional giveaway. Despite efforts to freeze accounts, some users liquidated their cryptocurrency, and $9 million worth of Bitcoin remains unreturned. This legal action is complicated by a 2021 Supreme Court ruling that declared cryptocurrencies are not property under certain laws, which might hinder Bithumb’s recovery efforts. This situation unfolds amid increased regulatory scrutiny in South Korea, focusing on tightening oversight of crypto exchanges due to concerns over market manipulation and operational errors.
Bithumb faces legal scrutiny for accidental $40bn Bitcoin giveaway
