Crypto Exchange CoinZest Trying To Recover $5.3M Worth Of Crypto In Airdrop Mishap

News | January 27, 2019 By:

South Korean cryptocurrency exchange Coinzest has been forced to conduct a massive roll-back after the exchange accidentally sent around $5.3 million worth of cryptocurrencies to customers in an airdrop.

Last week, Coinzest conducted an airdrop of We Game Tokens (WGT) as part of a promotional event. However, clients were instead credited with bitcoin and other cryptocurrencies due to a computer error.

“The WGT token airdrop process caused a computer error that incorrectly reflected the deposit details of some customers’ assets … we took measures to immediately check the server to prevent any additional damage as a result of the sales and purchases of some misappropriated assets by some customers,” the exchange said.

After detecting the problem, the exchange temporarily halted trading as developers attempted to resolve the computer error. Coinzest said that the asset and transaction information was restored on January 18, the last time a normal transaction occurred before the computer error occurred.

The exchange said that as of January 19, half of the funds have been reclaimed, but around $2.6 million hasn’t been returned.

“More than 10 members have tried to pay about KRW 600 million ($530,000) worth of passwords and withdrawals worth KRW 600 million even though they have noticed a mistake in deposits and computer errors,” the exchange said. “We immediately contact the customer to request asset return.”

Jeon Jong-hee, CEO of Coinzest, apologized about the incident and promised that Coinzest’s emergency response system will be strengthened to prevent the problem from recurring.

“I am extremely sorry that I have caused an unexpected computational error to customers,” Jong-hee said. “I am very sorry for my customers.”