Bithumb Sues to Recover 7 BTC After Payout Error

Bithumb has filed a lawsuit in a South Korean court seeking the return of seven Bitcoin that it says were accidentally paid out to a user during a payout process. The complaint, filed recently in Seoul, asks a judge to order the recipient to return the coins and any related losses.

The exchange alleges the transfer occurred during routine payout operations and that the funds ‘left its control in error,’ according to the court filing. The company flagged the mistake internally before turning to the courts. The suit names the recipient and requests judicial measures to reverse or recover the transfer.

Bitcoin transactions are recorded on a public blockchain and cannot be reversed by design. When coins move to an address controlled by a third party, recovery depends on the recipient’s cooperation, assistance from other platforms that hold the assets, or court orders that require custodians or intermediaries to freeze and hand over the funds.

The lawsuit asks the court to use available legal remedies to restore the seven BTC to Bithumb’s custody. If the coins remain on an exchange or with a custodian reachable through legal process, South Korean courts can seek to freeze or turn over those assets. If the coins have been moved to private wallets, the filing says recovery will depend on tracking the funds and obtaining compliance with a court order.

The case follows scrutiny of operational controls at cryptocurrency platforms and of safeguards against errors and theft. The filing notes the exchange uses internal controls and audits to manage deposits and withdrawals and that it pursued litigation after internal measures failed to resolve the transfer.

The court will decide whether to order the return or the freezing of assets under South Korean law. The hearing schedule and the court’s ruling have not been made public.