South Korean Exchange Coinnest Loses $5M in Accidental Crypto and Won Airdrop

Coinnest, a crypto exchange based in South Korea, is looking for a way to retrieve cryptocurrencies sent to clients accidentally in an airdrop.

The exchange made known to the public last week that around 6 billion Korean won (around $5.3 million) worth of bitcoin and other digital currencies were sent to clients because of a computer error. Coinnest was actually trying to airdrop We Game Tokens (WGT) at that time.

Furthermore, because of the server issue, some clients were able to receive Korean won from Coinnest. The exchange, however, doesn’t have plans to compensate customers for any losses incurred due to its server issues.

On January 19, Coinnest said that its server issues were resolved. The company is set to roll back transactions in order to recover its loss of assets. It also requested clients to return the funds they got by mistake.

Around half of the won was returned as of January 19.

However, there are some traders who sold the bitcoins they received by mistake right away, which caused bitcoin’s price to immediately crash to $50.

Coinnest has been in controversy before. CEO Kim Ik-hwan was purportedly detained by South Korean police over alleged embezzlement. Although the police raided the exchange, no confirmation of embezzlement has been found.