Bithumb sues to recover 7 BTC sent in payout error

Bithumb filed a lawsuit in South Korea asking a court to order the return of 7 Bitcoin that the exchange says were mistakenly paid out during a recent payout operation. The filing states the coins were sent to an address outside the exchange’s control and the error was discovered after the transaction was confirmed on the blockchain.

The complaint requests a court order requiring the recipient to return the 7 BTC and seeks provisional measures to preserve assets if the coins were moved or converted. Bithumb pursues recovery under civil law on grounds of mistaken payment and unjust enrichment.

Bithumb notified South Korean authorities and initiated court proceedings rather than relying solely on blockchain tracing or private negotiation, the filing notes. The exchange is one of South Korea’s largest cryptocurrency platforms and has managed previous security and operational incidents.

The filing acknowledges that recovery can be difficult if the recipient has already spent or converted the assets. It asks the court for powers that could compel return of the coins or seizure of equivalent value, with enforcement dependent on whether the recipient still holds the funds and where those assets are located.

Procedural steps the case may involve include requests for transaction records, wallet tracing evidence and coordination with law enforcement or blockchain analytics firms to identify subsequent movements of the funds. The court will review Bithumb’s claims and any defenses from the recipient as the case proceeds through the South Korean legal system.