South Korea-based crypto exchange Coinnest has announced that it accidentally sent cryptocurrencies worth USD 5.3 million to its customers during an airdrop. The exchange is now trying to take back its lost assets.
The incident occurred when the exchange was trying to airdrop We Game Tokens (WGT).
Last year, Kim Ik-hwan, CEO of Coinnest, was arrested by South Korean police on the charges of embezzling funds from the exchange. It was reported that authorities raided their offices. Nevertheless, no confirmation of embezzlement was reported. The news raised concerns regarding the credibility of the exchange, however, it had apparently managed to regain customer trust.
In this latest incident, according to media reports, a computer error resulted in the loss of around KRW 6 billion (USD 5.3 million). During the airdrop, Bitcoin along with some other currencies were accidently deposited into customer accounts.
Furthermore, some customers received some amount of Korean won from Coinnest. The exchange later explained that it happened due to an error in their server. However, the exchange has decided to ignore the losses occurred due to the server issue.
Now, Coinnest is planning to roll back the transactions in order to regain the lost assets. Reportedly, it has also requested its clients to return the funds that they have received mistakenly. The customers have responded well to the appeal and around half of the won have been returned by now.
However, some traders immediately sold the assets received during the airdrop. Reportedly, those traders received Bitcoin instead of WGT, and their immediate selling caused Bitcoin’s price on the exchange to flash-crash to USD 50. Currently, the exchange is devising a strategy to tackle this issue effectively.
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