- Upbit and Bithumb agreed to pay $2.4 million to users for network outage issues on Martial Day in South Korea.
- Other South Korean crypto exchanges such as Coinone, Korbit and Gopax are not responsible for any losses of their customers.
South Korean crypto exchanges Upbit and Bithumb made headlines again today. Both agree to pay about $2.4 million to users in compensation. This is to cover the losses incurred due to network outages on December 3, 2024, South Korea’s War Day. This marked the largest compensation ever in the history of South Korean crypto exchanges.
According to the news Report from local news reporter Yonhap News Agency, both Upbit and Bithumb are paying 3.5 billion won, which is also 2.4 million USD, to their customers for a virtual asset computer error that occurred on the day of war in South Korea.
The compensation from the exchanges is based on the internal rules of each exchange. And it is difficult to determine the actual losses incurred by users and whether investor protection is properly implemented with this arrangement. To avoid such cases, South Korean financial authorities keep an eye on exchanges’ implementation of compensation payments and improvement plans.
Upbit and Bithumb pay record amounts of compensation to users
According to the information submitted by a member of the National Assembly’s Political Committee to the Financial Supervisory Authority today, the two major crypto exchanges agreed to pay compensation to users.
Upset will pay 3.1 billion won, which is about 2.2 million USD, to compensate for 596 system errors. On the other hand, Bithumb will pay about 377.5 million won, which is about 264,000 USD for 124 incidents. Other local crypto exchanges such as Coinone, Korbit and Gopax are not involved in this matter and do not pay compensation to their customers.
While this is not the first time these crypto exchanges have paid compensation to users, this is the largest compensation ever. Upbit previously paid over 11 million won compensation for 50 cases in 2022. And Bithumb paid over 94 million won to 29 people in 2023.
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