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Investor Sues Korean Crypto Exchange For Delaying Coin Transfer Ahead Of Luna Crash – Exchanges Bitcoin News
A cryptocurrency investor has reportedly sued South Korean crypto exchange Upbit after the trading platform delayed processing the luna coin transfer before the crash. The Korean crypto exchange is investigating the details of the lawsuit.
Upbit Sued by Crypto Investor
Dunamu Inc., the company that operates South Korean cryptocurrency exchange Upbit, has been sued by a crypto investor, a man in his 50s, Korea Joongang Daily reported on Monday.
The investor alleged that Upbit delayed processing the coin transfer from the exchange before the coin crashed, resulting in a monetary loss of 156 million won ($112,477). Upbit is one of the largest crypto exchanges in South Korea.
The lawsuit filed in Seoul Central District Court last week explains that the investor attempted to transfer 1,310 luna coins (LUNA) on March 24 from the Upbit crypto wallet to a wallet he owns at Binance to exchange the coins for Vietnamese dong. On that date, the price of LUNA, now called luna classic (LUNC), was around $92.79 per coin. It crashed to near zero in early May.
Binance notified the investor the following day that his coins had been returned due to a problem with the transfer process. However, the coins did not show up in his Upbit wallet either. After asking, Upbit told him that his coins had been accidentally deposited into Upbit’s own crypto wallet and that the return was being held up by account verification procedures as required by law.
In South Korea, the Act on the Reporting and Use of Certain Financial Transaction Information was amended to reflect the Financial Action Task Force’s (FATF) travel rule. The change took effect on March 25, and requires virtual asset service providers (VASPs) in South Korea to verify sender and receiver information about crypto transactions.
The investor’s lawyer explained that his client asked Upbit 27 times when his luna coins would be returned to his wallet. Each time the exchange told him that the coins’ return was being processed.
Dunamu told the publication that the company is looking into the details of the lawsuit. However, Upbit’s terms of service state that the company is not responsible for any losses investors incur as a result of the exchange following the regulations.
Do you think the Korean crypto exchange should be responsible for the loss the investor incurs in this case? Let us know in the comments section below.
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