Coindesk Logo

South Korean Exchange Loses $5 Million in Accidental Bitcoin Airdrop

South Korean Exchange Loses $5 Million in Accidental Bitcoin Airdrop

South Korean Exchange Loses $5 Million in Accidental Bitcoin Airdrop

South Korean exchange Coinzest reportedly lost around $5 million when it airdropped bitcoin and other cryptocurrencies instead of WGT.

South Korean exchange Coinzest reportedly lost around $5 million when it airdropped bitcoin and other cryptocurrencies instead of WGT.

South Korean exchange Coinzest reportedly lost around $5 million when it airdropped bitcoin and other cryptocurrencies instead of WGT.

AccessTimeIconJan 21, 2019, 7:40 PM
Updated Aug 18, 2021, 10:36 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

South Korean crypto exchange Coinzest is looking to take back cryptocurrencies accidentally sent to clients in an airdrop.

The exchange announced last week that some 6 billion Korean won (around $5.3 million) in bitcoin and other cryptocurrencies were sent to customers due to a computer error, according to CoinDesk Korea. The exchange was trying to airdrop We Game Tokens (WGT) when the incident occurred.

Further, due to the server issue, some customers also received Korean won from the exchange. The exchange has no plans to compensate users for any losses suffered through its server issues.

Coinzest's server issues were resolved by Jan. 19, and the company plans to roll back transactions to restore its assets. It has also asked customers to return funds they received by mistake.

As of Jan. 19, about half of the won was returned.

Some traders who received bitcoin instead of WGT reportedly sold their new holdings immediately, causing bitcoin's price to flash-crash to $50.

Correction: This article previously referred to the exchange as Coinnest. The exchange which airdropped bitcoin was Coinzest. CoinDesk regrets the error.

South Korean won image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.