Airdrop Error Costs Coinnest $5 Million, Plans to Restore Funds

South Korean crypto exchange Coinnest has made a major mishap as it accidentally transferred millions worth of digital assets to clients' accounts in an airdrop.

The incident took place last week when the exchange was trying to airdrop We Game Tokens (WGT) to its clients. Reportedly, this happened due to a computer error, and the exchange ended up sending Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term worth around 6 billion Korean won ($5.3 million).

In addition, some customers also received Korean won from the exchange in their accounts due to some server error.

Crypto never fails to entertain:
- Korean exchange @coinnest_info airdrops Bitcoin instead of some We game tokens (WGT)
- $5.3 Million worth of BTC and other Crypto and even Korean Won gets deposited into users accounts
- Some traders immediately sell the BTC they got causing a..

— DAO curious shrikar (@shrikarparashar) January 22, 2019

Restoring Losses

Coinnest resolved the server issue by January 19 and is now planning to roll back transactions to restore its assets. The exchange has already accounted for half of the won mistakingly transferred to its clients but is still waiting for the other half to return.

The exchange, however, did not announce any plan to compensate traders who suffered losses due to the server issue.

However, a number of customers immediately hit the market to sell the accidentally gained Bitcoins which resulted in a flash crash on the exchange taking Bitcoin’s price to as low as $50.

The exchange is also asking its clients to return funds they received by mistake.

A Controversial Exchange

Coinnest had been in the focus of controversies many times. Last year, South Korean authorities detained the exchange's co-founder and CEO Kim Yik-hwan on charges of embezzlement.

Recently, a South Korean court has sentenced two executives including CEO of the crypto exchange Komid to jail for faking trading volume and misleading clients.