According to a fresh report from Coindesk Korea, it would appear that a South Korean cryptocurrency exchange has just performed a massive blunder. Specifically, it is the relatively prominent ”Coinnest” exchange that has made an airdrop-related mistake.
Coinnest mistakenly released $5.3 million worth of Bitcoin
In fact, the report suggests that Coinnest accidentally airdropped a staggering amount of Bitcoin to its users. The exchange has now shared that the mistaken airdrop released 6 billion Korean won – which roughly equals to $5.3 million – to its traders.
Supposedly, the exchange was trying to airdrop We Game Tokens (WGT) to its users when something evidently went epically wrong. Nevertheless, this was apparently not the only accident to befall Coinnest.
During the relative turmoil caused by the accidental airdrop, Coinnest reportedly also released some Korean won to its users. It is currently unclear exactly how all of this unfolded and was made possible.
Be that as it may, Coinnest has been trying to roll back their servers since the incident, in an effort to recoup their losses. However, a few of the account holders that received the cryptocurrency withdraw it immediately.
As such, it will be significantly harder to Coinnest to successfully recover the lost cryptocurrency. Coinnest is now also openly asking its users to return the misdirected funds back to the exchange.
Coinnest’s Bitcoin price crashed to ~$50
According to the Coindesk Korea report, however, a significant portion of Coinnest users rushed to withdraw the misdirected Bitcoin. In fact, this seemingly mad dash to liquidate the unexpected surpluses crashed Coinnest’s onsite Bitcoin price, reaching almost $50.
The report goes on to suggest that Coinnest’s server issues were remedied on January 19th, with around half of the lost Korean sons returned at this point.
Moreover, the piece also alleges that Coinnest does not have any active plans to compensate any of the afflicted users.
Although some might feel that this misdirected airdrop seems overly clumsy, it is not the first time Coinnest makes awkward headlines. Rather, the first quarter of 2018 saw Coinnest’s former CEO, Kim Ik-hwan, accused of embezzling billions of Korean won from clients.
Subsequently, the Coinnest board acted swiftly to depose Kim Ik-hwan, and embarked upon making profuse apologies to users. Furthermore, Kim Ik-hwan was then arrested and questioned by Korean authorities, although the issue has since fallen off the radar.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.