Investor Sues Korean Crypto Exchange for Delaying Coin Transfer Before Luna Crash – The investor claimed that Upbit mishandled his coin transfer off the exchange just before the coin crashed, costing him 156 million won ($112,477) in lost revenue. One of the biggest cryptocurrency exchanges in South Korea is Upbit.
The investor sought to transfer 1,310 luna coins (LUNA) on March 24 from his Upbit crypto wallet to a wallet he controls at Binance in order to convert the coins for Vietnamese dong, according to the lawsuit submitted to the Seoul Central District Court last week. LUNA, now known as Luna Classic (LUNC), cost about $92.79 per coin on that day. Early in May, it practically vanished to zero.
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The following day, Binance informed the investor that his coins had been refunded as a result of a transfer issue. The coins did not, however, appear in his Upbit wallet either. After asking, Upbit responded that his coins had been unintentionally deposited in Upbit’s own cryptocurrency wallet and that the legal requirement for account verification was delaying their recovery.
The Financial Action Task Force (FATF) Travel Rule was incorporated into South Korea’s Act on Reporting and Use of Certain Financial Transaction Information. On March 25, the amendment took effect, mandating South Korean virtual asset service providers (VASPs) to confirm the source and recipient details of cryptocurrency transactions.
The investor’s attorney noted that his client questioned Upbit regarding the return of his luna coins 27 times. The exchange informed him that the return of the coins was being handled each time.
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Investor Sues Korean Crypto Exchange for Delaying Coin Transfer Before Luna Crash – According to Dunamu, the company is looking into the specifics of the claim. The company is not liable for any losses suffered by investors as a result of the exchange following restrictions, according to Upbit’s terms of service.
