According to reports, a cryptocurrency investor sued South Korean cryptocurrency exchange Upbit for delaying processing of his luna coin transfer before the crash. Korea’s crypto exchange Upbit is currently investigating the matter.
Crypto Investors Sue Upbit
Dunamu Inc. is being sued by a South Korean crypto investor. The man was in his 50s. Korea Joongang Daily reported Monday.
According to the investor, Upbit failed to process his cryptocurrency transfer from the exchange before the coin crashed. This led the investor to suffer a loss of $1122,477 ($156 million). Upbit is South Korea’s biggest crypto exchange.
According to the lawsuit, the plaintiff filed last week with Seoul Central District Court. The investor tried to send 1,310 Luna coins (LUNA), from his Upbit cryptocurrency wallet to a Binance wallet in order to trade the coins for Vietnamese Dong. The price of LUNA (now called luna classic or LUNC) was $92.79 per coin at that time. The price of LUNA dropped to nearly zero by May 1.
Binance informed the investor that the coins were returned because of a transfer problem the next day. The coins did not appear in the investor’s Upbit wallet. After enquiring, Upbit told him that his coins had been accidentally deposited in Upbit’s own crypto 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 amended to reflect the Financial Action Task Force (FATF)’s Travel Rule. Amendment 25 of March 2015 required virtual asset services providers (VASPs), in South Korea, to verify sender/recipient information regarding 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 said that company officials are looking into details regarding the lawsuit. However, Upbit’s terms of service state that the company is not responsible for any losses incurred by investors as a result of the exchange adhering to regulations.
Are you a believer that the Korean cryptocurrency exchange should be held responsible for any loss suffered by an investor? Comment below to let us know your thoughts.
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