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- Bithumb finds over $200M in dormant crypto spread across 2.6 million inactive accounts.
- Some forgotten holdings gained over 61,000% after sitting idle for nearly 12 years.
- Dormant asset recovery could return significant supply to markets in future cycles.
South Korean cryptocurrency exchange Bithumb has disclosed that more than $200 million in customer assets remain idle across millions of inactive accounts. The discovery followed a recovery campaign targeting users who had not logged in or traded for extended periods. The findings highlight the scale of forgotten holdings accumulated during crypto’s early retail phase.
Bithumb reported that inactive balances totaled about 291.6 billion Korean won. The amount equals roughly $201.8 million at current exchange rates. The review covered around 2.6 million accounts. Each account showed no activity for at least one year.
Some accounts had remained untouched for far longer. Bithumb said several showed no activity for more than ten years. The longest recorded inactivity lasted 4,380 days. That period is close to twelve years.
The exchange identified one account holding the largest dormant balance. That single account contained assets worth about $2.84 million. Bithumb did not disclose the specific assets involved. It confirmed only the total valuation.
Bithumb Links Inactive Accounts to Early Adoption Period
According to the exchange, many dormant accounts date back to crypto’s earliest adoption phase. Users often purchased small amounts of digital assets at that time. Expectations of long-term value were limited. Many users later stopped tracking their accounts.
Bithumb said market downturns and platform changes contributed to account abandonment. In other cases, personal interest in crypto faded. Some users likely believed their balances were insignificant. Over time, price growth changed that reality.
The exchange noted that some dormant holdings recorded gains above 61,000%. That represents more than 600 times the original value. These returns came from assets acquired at very early stages. The gains accumulated without user activity.
For context, Bitcoin traded near $767 at the start of 2014. Recent prices hovered around $89,123. That equals a gain of about 11,600%, or roughly 115 times. Several dormant assets on Bithumb exceeded that performance.
Also Read: Crypto Hack Losses Drop in December, But $76M Still Stolen
Bithumb has carried out similar recovery efforts before. During its 11th anniversary campaign, the exchange reconnected users with inactive balances. About 36,000 users reclaimed assets. The total value reached close to $50 million.
The current campaign is much larger. Bithumb linked the scale to its long operating history. Growth in crypto valuations also played a role. More early accounts now hold meaningful sums.
Recovery Effort May Return Dormant Assets to the Market
The exchange claimed that it will inform the qualified users directly. It will be offering support in identity verification and account unlocking. Bithumb presented the initiative as customer protection. The company failed to give an open deadline.
The announcement can influence the general market forces. Potential future supply is in the form of dormant assets. Recovery funds would get back into trade markets. The said movement can affect future cycles in terms of liquidity.
The announcement is timed when security has remained a major issue in South Korea. Competitor exchange Upbit has recently transferred almost all customer funds into cold storage. The move followed a significant security incident.
Approximately 44.5 billion won, or $30 million, was stolen by hackers. The money was stolen out of one of the Solana hot wallets. The operator of Upbit, Dunamu, responded swiftly. It increased the cold storage ratio to 99%.
The South Korean legislation stipulates that 80 percent of assets should be offline in exchanges. Prior to the breach, Upbit had already surpassed that figure. Law enforcers have initiated an investigation. Initial intelligence from local reports identified the Lazarus Group as the initiator of the attack.
Also Read: Bitwise Eyes Regulated Exposure to AAVE and DeFi Through New ETF Filings
