A cryptocurrency investor reportedly sued South Korean crypto exchange Upbit after the trading platform delayed processing his Lunacoin transfer before crashing. The South Korean crypto exchange is investigating details of the lawsuit.
Upbit was sued by crypto investors
Dunamu Inc, operator of South Korean cryptocurrency exchange Upbit, has been sued by a crypto investor, a man in his 50s, the Korea Joongang Daily reported Monday.
The investor claimed that Upbit delayed processing the transfer of his coins from the exchange before they crashed, causing a financial loss of 156 million won ($112,477) Upbit is one of the largest crypto exchanges in Korea.
The lawsuit, filed last week in Seoul Central District Court, explains that the investor attempted to transfer 1,310 luna coins (LUNA) from the Upbit crypto wallet to a wallet he owned at Binance on March 24 in order to exchange the coins for Vietnamese dong. On that day, the price of LUNA, now called luna classic (LUNC), was around $92.79 per coin. That crashed to near zero in early May.
The next day, Binance notified investors that it had returned the coins because of problems with the transfer process. However, the coins did not appear in his Upbit wallet either. Upon inquiry, Upbit informed him that his coins had been mistakenly deposited into his Upbit crypto wallet and that their return was pending due to account verification procedures required by law.
In South Korea, the “Act on Reporting and Use of Specified Financial Transaction Information” was amended to reflect the Financial Action Task Force (FATF) travel rules. The amendment, which went into effect on March 25, requires South Korean virtual asset service providers (VASPs) to verify information on senders and recipients of crypto transactions.
The investor’s lawyer explained that his client asked Upbit 27 times when to return the Luna coins to his wallet. Each time, the exchange informed him that the return of the coins was being processed.
Dunamu told the publication that the company is investigating the details of the lawsuit. However, Upbit’s terms and conditions state that the company is not liable for losses incurred by investors as a result of the exchange’s compliance with regulations.
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