South Korea's Coinzest Exchange Makes Costly Bitcoin Airdrop Error and Loses $5 Million USD

You have probably never made such a huge mistake as a South Korean exchange called Coinzest has done it. The crypto company has accidentally made an airdrop of Bitcoin (BTC) to its clients in the value of 6 billion Korean won ($5.3 million USD).

The major incident happened when the exchange was trying to airdrop We Game Tokens (WGT) to its clients. Due to an issue with the servers, people received many different cryptos from the company, including sending them the Bitcoin amount.

According to reports, some clients also had losses because of the downtime during the server issues, but the exchange does not have any plans to compensate these users.

As soon as the system was operational again, the exchange asked users to refund the money and used some systems to restore the transactions and got half of the money lost during the day. Some people sold their BTC right away and crashed the price at the exchange. At the moment, not all of the money was recovered, but the exchange is working on this at the time.

“Coinzest immediately contacted the customers and asked them to return their assets. The majority of the members promised to return [them].”

However, it does not look like the whole incident might be linked to this at all. In fact, the glitch was probably caused by a technical issue unrelated to anything else and it harmed the exchange more than the customers. According to CEO Jeon Jong-hee:

“I am extremely sorry that I have caused an unexpected computational error to customers … I am very sorry for my customers.”

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Gabriel Machado
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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