SEOUL, Feb 7 (Reuters) - South Korean cryptocurrency exchange Bithumb said on Saturday it had accidentally given away more than $40 billion worth of bitcoins to customers as promotional rewards, triggering a sharp selloff on the exchange.

Bithumb apologised for the mistake, which took place on Friday, and said it had recovered 99.7% of the 620,000 bitcoins, worth about $44 billion at current prices. It had restricted trading and withdrawals for the 695 affected customers within 35 minutes of the erroneous distribution on Friday.

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