South Korean exchange CoinZest mistakenly gives away $5.3 million worth of crypto

22 Jan, 2019 | Updated: 22 Jan, 2019
by Richard Allen
South Korean exchange CoinZest mistakenly gives away $5.3 million worth of crypto

In what was supposed to be a routine airdrop, South Korean cryptocurrency exchange CoinZest is now forced to conduct a massive roll-back after mistakenly giving away around $5.3 million worth of cryptocurrencies, CryptoNews reports.

Last week, the exchange planned on airdropping hundreds of We Game Tokens (WGT) as part of a promotional event. However, users were instead credited with other cryptocurrencies like Bitcoin and Ethereum.

Citing a “computer error” as the cause of the blunder, the exchange’s servers went offline as the team scrambled to restore the databases to their original state, and attempting to reach customers, many of whom had already made fiat withdrawals on the funds. Most of the funds have since been reclaimed, but the exchange states that around $2.6 million hasn’t been returned.

Many believe that consumers withdrew the funds as soon as they received the incorrect crypto. One industry expert believes that there is “no way CoinZest can get the funds back from customers who have already made withdrawals.”

Read more: 7 exchanges obtain Korean security certification, 14 others vulnerable to attacks, South Korea to make Gwangju city 'International Crypto Valley District', CEO of South Korean crypto exchange imprisoned for faking volume

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