South Korean crypto exchange Coinnest got caught up in a tricky situation after it accidentally sent cryptos to clients accidentally in an airdrop. The exchange is acting immediately to reverse this mistake that was revealed last week.
In an announcement made last week, the exchange stated that it had wired some 6 billion Korean Won (an equivalent of $5.3 million) in Bitcoin and other cryptos to customers because of a computer error.
According to crypto publication, Coin desk’s Korean subsidiary, the exchange was attempting to airdrop We game Tokens (WGT) when the accident occurred. The server issue also saw some customers receive money in Korean Won. The exchange has not revealed any plans to compensate users that may have lost money as a result of the server issues.
Despite Coinnest’s server issues being resolved on Jan 19, the exchange plans to roll back transactions that will restore its assets. As of Jan 19, half of the Won had been returned, while some traders that had received Bitcoin, immediately sold their new holdings causing a Bitcoin price flash crash to $50.
This is not the first time Coinnest has found itself embroiled in controversy. In 2018, the firm’s CEO Kim Ik-hwan was reportedly held by the country’s police on suspicion of embezzlement of the exchange’s funds.