Bithumb Admits System Flaws as Users Targeted by Smishing Scams
Bithumb, one of South Korea’s largest cryptocurrency exchanges, is warning users about a surge in smishing scams following a massive Bitcoin transfer mistake. Fraudsters are sending fake compensation messages with malicious links that can steal personal data and digital assets, prompting the Financial Supervisory Service (FSS) to issue a public alert.
The warning comes after Bithumb accidentally sent 620,000 Bitcoin, worth more than $40 billion, to some users during a small cash reward program. Both the exchange and regulators are urging customers to stay vigilant and avoid clicking any suspicious links until an official compensation plan is announced.
Fraudsters Exploit Bithumb Mistake to Target Users
After the South Korean crypto exchange, Bithumb, faced a Bitcoin transfer mistake, the platform alerted users about smishing scams. Scammers send messages pretending to be official compensation notices to trick people into installing malicious apps.
South Korea’s financial watchdog, the FSS, has warned Bithumb users not to click on any links in compensation messages. The regulator cautioned that these scammers are taking advantage of the recent Bitcoin transfer mistake by the exchange. Both the regulator and Bithumb emphasised that no official compensation links have been released, and that any messages claiming otherwise should be treated as fraudulent.
Local media reports on February 12, 2026 revealed that the FSS had issued an alert about the rise in URL-based smishing scams. Clicking the links can automatically download malicious software, giving scammers access to personal information and digital assets. The regulator also advised that anyone who accidentally installed a malicious app should immediately turn on airplane mode and reset their device. Victims are also encouraged to report the incident to the police.
What is the Bithumb Bitcoin Mistake?
Last Friday, Bithumb accidentally sent 620,000 Bitcoin, worth about $40 billion, to customers. The mistake happened during a small cash reward program, where the exchange intended to give 2,000 won, about $137, to 655 customers. Instead of these minimal rewards, an employee entered the amount in BTC, sending 2,000 Bitcoins to each account and briefly turning customers into crypto millionaires.
The exchange immediately apologized and confirmed that it recovered almost all the funds. The exchange also restricted trading and withdrawals for 695 affected users within 35 minutes of the error. The platform clarified,
“We want to make it clear that this matter has nothing to do with external hacking or security breaches, and there is no problem with system security or customer asset management.”
Following the incident, the FSS summoned an emergency meeting and promised to investigate the matter. The team would probe if any illegal activities have taken place, which could lead to formal inquiries. Bithumb also added that it would cooperate completely with the regulator’s investigation. The company added that the incident would be taken as a major lesson. CEO Lee Jae-won noted, “[We] will take this accident as a lesson and prioritise ‘customer trust and peace of mind’ rather than external growth.”
The exchange will also compensate the affected customers with 20,000 won ($13.66). Bithumb has also promised to improve verification systems, introducing AI tools for a more secure environment.
