A cryptocurrency investor has actually supposedly taken legal action against South Korean crypto exchange Upbit after the trading platform postponed processing his luna coin transfer prior to its crash. The Korean crypto exchange is examining the information of the suit.
Upbit Sued by Crypto Investor
Dunamu Inc., the business that runs the South Korean cryptocurrency exchange Upbit, has actually been taken legal action against by a crypto investor, a guy in his 50s, Korea Joongang Daily reported Monday.
The investor declared that Upbit postponed processing his coin transfer off the exchange prior to the coin crashing, leading to a financial loss of 156 million won ($112,477). Upbit is among the biggest crypto exchanges in South Korea.
The suit submitted with the Seoul Central District Court recently discusses that the investor tried to transfer 1,310 luna coins (LUNA) on March 24 from his Upbit crypto wallet to a wallet he owns at Binance in order to exchange the coins for Vietnamese dong. On that date, the rate of LUNA, now called luna classic (LUNC), was around $92.79 per coin. It crashed to near no in early May.
Binance informed the investor the following day that his coins had actually been returned due to an issue with the transfer procedure. However, the coins were disappointing up in his Upbit wallet either. After asking, Upbit informed him that his coins had actually been mistakenly transferred in Upbit’s own crypto wallet which their return was held up by account confirmation treatments as mandated by law.
In South Korea, the Act on Reporting and Use of Certain Financial Transaction Information was modified to show the Financial Action Task Force (FATF)’s Travel Rule. The modification entered into impact on March 25, needing virtual property company (VASPs) in South Korea to validate sender and recipient info of crypto deals.
The investor’s attorney described that his customer asked Upbit 27 times when his luna coins would be gone back to his wallet. Each time, the exchange informed him that the coins’ return was being processed.
Dunamu informed the publication that the business is checking out the information of the suit. However, Upbit’s regards to service state that the business is not accountable for any losses sustained by financiers as an outcome of the exchange sticking to policies.
Do you believe the Korean crypto exchange should be accountable for the loss sustained by the investor in this case? Let us understand in the comments area below.
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