Home News Bitcoin South Korean Exchange Accidentally Transfers $5 Mn Worth BTC to Customer Accounts

South Korean Exchange Accidentally Transfers $5 Mn Worth BTC to Customer Accounts

January 23, 2019 15:30
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In what could be the catastrophic blunder for any crypto exchange has happened with a South Korean crypto exchange Coinnest. The exchange while attempting an airdrop for We Game Tokens (WGT), has accidentally airdropped over $5.3 million in Bitcoin and Korean Won to customers account.

The exchange in its statement said that it has accidentally sent 6 billion Korean Won worth bitcoin, which equates to $5.3 million. The exchange is now trying to reclaim its misdirect funds from the users, with the majority agreeing to return the fund.

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While some users immediately sold the coins, resulting in a sharp fall in the prices of Bitcoin and has crashed almost to $50 on the site. The issue happened on January 18th when it was performing the airdrop of WGT coins. Apparently, the server issues were solved on Jan 19th with half of the Korean Won already returned at that time.

“The WGT token airdrop process caused a computer error that incorrectly reflected the deposit details of some customers’ assets … we took measures to immediately check the server to prevent any additional damage as a result of the sales and purchases of some misappropriated assets by some customers.”

Hankyung publication reported: “about 10 members tried to sell about KRW 600 million worth [~$530,000] of cryptocurrencies or to withdraw money in Korean won even though they recognized the mistake of depositing money and computer errors. [Therefore] there has been a problem of rapid price decline.”

Coinnest was also in the negative news in the first quarter of 2018 when its former chief executive Kim Ik-hwan was suspected to of allegedly transferring billions of Korean Won from client’s account to his own account. Later Kim Ik-hwan was arrested and questioned by the authorities but nothing later was reported in the case.

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