Crypto Exchange Coinnest Loses $5 Million in Accidental Bitcoin Airdrop

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South Korean exchange Coinnest is looking to take back digital currencies accidentally sent to clients in an airdrop.

The exchange declared last week that around 6 billion Korean Won (approx. $5.3 million) in bitcoin and other digital currencies were sent to clients due to a computer error, as per CoinDesk Korea. The exchange was trying to airdrop We Game Tokens (WGT) when the incident occurred.

Further, because of the server issue, some clients also received Korean won from the exchange. The exchange has no intention to compensate users for any losses suffered through its server issues.

Coinnest’s server issues fixed by  19th Jan and the company plans to roll back transactions to recover its assets. It has further asked clients to return funds they received by mistake.

As of 18th Jan., about half of the won returned.

Some traders who received bitcoin in place of WGT reportedly sold their new holdings shortly, causing bitcoin’s price to flash-crash to $50.

Coinnest has found itself entangled in controversy before. Last year, CEO Mr. Kim Ik-hwan was reportedly arrested by South Korean police on concerns that he was embezzling funds from the exchange.

Prosecutors had already raided the exchange, though it is unclear if any evidence of embezzlement was found.