Coinnest Exchange, a South Korean based crypto exchange mistakenly airdropped millions worth of Bitcoin to users. The details of the massive blunder were revealed recently through a report of Coindesk Korea.
Accidentally Airdrop of 5.3 Million Dollar Worth Of Bitcoins
Coinnest, the South Korean crypto exchange according to the report mistakenly airdropped 5.3 million dollars worth of Bitcoin to its users. The value of the Bitcoin in local currency was 6 billion Korean won.
According to the release, the exchange was making an effort to airdrop WeGame Tokens (WGT) to its users when the process encountered a problem that led to the accidental airdrop to its users. Also, as reported, not just Bitcoins, but some South Korean won was also included in the accidental transactions. Clear definition or description of the error that took place and how it happened is still unknown.
Coinnest’s Effort To Retrieve The Cryptocurrency
However, Coinnest has made an effort to retrieve the cryptocurrencies that were mistakenly discharged to its user’s account, but efforts have been abortive. This has been made impossible due to some accounts that exchanged and withdrew the funds immediately the blunder was made. The difficulty has made the exchange make an open call to its users which accounts were funded mistakenly to return the funds to the exchange.
Effect Of The Massive Crypto Withdrawal On Coinnest and Past Blunder of The Exchange
The accidental discharge of cryptocurrency into the account of the users and the subsequent effect of withdrawal that took place by the users has led to the crash of the price of Bitcoin on the exchange. The on-site Bitcoin price of the exchange has been crashed to about $50 by the effect of the action.
Though, it was claimed that the server issue of the crypto exchange had been resolved on the 19th of January with about half of what was lost returned. However, the report indicated that the exchange does not still have a remedy for the crippling situation.
Meanwhile, the event is not the first scandal that will be rocking the exchange. In the first quarter of 2018, the former CEO of the exchange, Kim Ik-hwan was accused of defrauding users of billions in won. The situation was remedied by sacking the CEO and apologising to their clients as the CEO was prosecuted.