Amidst the bear market where everyone is trying to hold onto the precious Bitcoin, the South-Korean crypto exchange CoinZest accidentally airdropped $5 Million worth of Bitcoin and Korean Won to its users.
As a result of this surprise airdrop, the users who were notified of the same scrambled to sell their surprise tokens. This mass sell-off resulted in the price of Bitcoin falling to as low as $50 on the exchange.
Mayhem Caused by the Surprise Airdrop
CoinZest was in the process of airdropping We Game tokens (WGT) when this huge blunder occurred. Instead of airdropping WGT tokens, the exchange accidentally surprised its customers by airdropping 6 Billion Korean Won worth of Bitcoin which is equivalent to $5.3 million.
The problems did not end just there for the Korean exchange. To make matters worse, the exchange also accidentally transferred some Korean Won to its users’ accounts. This huge blunder was a huge blow for the exchange in such a torrid crypto bear market.
The exchange was initially supposed to airdrop about 30,000 WGT tokens as part of a promotional event. However, due to what the authorities call a system error, they ended up crediting user accounts with other cryptocurrencies such as Bitcoin and Ethereum. As a consequence of this, a lucky few customers withdrew their surprise earnings to Korean Won. The exchange has been trying to roll back its servers to the time before the mishap. However, this doesn’t seem to have worked out so far.
About 400 members were supposed to receive a cut in the 30,000 WGT tokens. However, they received Bitcoin instead. Amongst the 400 customers, 10 tried to sell $530,000 worth of cryptocurrency which resulted in a Bitcoin price crash on the exchange platform.
Does This Mean That the Exchange Is Going to Shutdown?
CoinZest is a smaller cryptocurrency exchange than Coinbase and Binance. So, it is pretty clear that this loss of over $5 million is going to be quite hard for the platform to overcome. After a not so successful attempt at rolling back the system servers, the South Korean exchange has requested its customers to return the cryptocurrency that was accidentally transferred to their wallets.
Needless to say, not everyone who withdrew the cryptocurrency went on to return these tokens. As per the latest reports, the exchange is still supposed to receive around $2.95 million worth of cryptocurrency. The exchange has not yet announced any case of bankruptcy. However, things aren’t looking too good for the exchange.
The CEO of the exchange has issued an apology to all of the exchange’s customers for the inconvenience caused by their mistake. For a medium-sized exchange like Coinzest, it is very hard to survive in a crypto bear market, and on top of that, an unnecessary loss like this one will not help in its fight for survival.
In a last attempt to recover the lost funds, the exchange has also requested its customers to return the cryptocurrency that does not belong to them. However, currently, things are not looking too great for the exchange in this bear market.