South Korean Cryptocurrency Exchange Investor Sues Korean Cryptocurrency Exchange for Delaying Coin Transfer prior to Luna Crash


Dunamu Inc., the firm that operates the South Korean Cryptocurrency Exchange Upbit, has been sued by a man in his 50s, cryptocurrency investor, Korea Joongang Daily reported on Monday.


The investor stated that Upbit delayed processing his coin transfer off the exchange prior to the coin crashing, ensuing in a monetary loss of 156 million won ($112,477). Upbit is one of the largest Cryptocurrency Exchanges in South Korea.


Also Read: How Coinbase Exchange Protects Users From Risky Assets


The lawsuit filed with the Seoul Central District Court last week mentions that the investor attempted to transfer 1,310 luna coins (LUNA) on March 24 from his Upbit Cryptocurrency wallet to a wallet he owns at Binance exchange in order to exchange the coins for Vietnamese dong. On that date, the price of LUNA, now called luna classic (LUNC), was around USD 92.79 per coin. It crashed to near zero in early May.



Binance Exchange notified the investor the following day that his coins had been reimbursed due to a problem with the transfer process. However, the coins were not showing up in his Upbit wallet either. After probing, Upbit told him that his coins had been inadvertently deposited in Upbit is own Cryptocurrency Wallet and that their return was held up by account verification procedures as mandated by law.


In South Korea, the Act on Reporting and Use of Certain Financial Transaction Information was edited to reflect the Financial Action Task Force (FATF) is Travel Rule. The amendment went into effect on 25th March, demanding virtual asset service providers (VASPs) in South Korea to authenticate sender and recipient information of cryptocurrency transactions.


Also Read: DeFi Platform Credix Raises $11.25M To Tie Institutional Investors With Emerging Market Fintechs


The investor is lawyer described that his client asked Upbit 27 times when his luna coins would be reimbursed to his wallet. Each time, the Upbit exchange told him that the coins return was being processed.


Dunamu told the publication that the firm is looking into the details of the lawsuit. However, Upbit is terms of service state that the firm is not responsible for any losses incurred by investors as a consequence of the Upbit Exchange adhering to laws and regulations.


Leave a Comment


CryptoHelpExchange disclaims all liability for any mistakes on this website (including omissions or inaccurate material). Even if they are the consequence of mistakes, CryptoHelpExchange disclaims all liability for any trading or investment losses caused by visitors.

Without the express consent of CryptoHelpExchange, no part of the written information on this website may be duplicated. If it is discovered that material is being copied without CryptoHelpExchange's consent, that organization will pursue legal action against those responsible to the fullest extent permitted by the law. The aforementioned rule does not apply to any RSS feeds that CryptoHelpExchange offers or situations where explicit permission from CryptoHelpExchange was given.

Your single and only option if you disagree with any of the terms as stated above is to stop using CryptoHelpExchange.