Investor Files Lawsuit Against Korean Crypto Exchange for Postponing Coin Transfer Prior to Luna Crash

October 12, 2022

upbit sued

Investor Files Lawsuit Against Korean Crypto Exchange for Postponing Coin Transfer Prior to Luna Crash. A cryptocurrency investor has reportedly filed a lawsuit against South Korean cryptocurrency exchange Abid after the trading platform was detained prior to the deactivation of the Luna exchange. Korea Crypto Exchange is investigating the details of this case. Dunamu, the company that runs South Korean cryptocurrency exchange Abit, has been sued by a cryptocurrency investor in his 50s, Korea Jungkook Daily reported on Monday. The investor accused Ubit of delaying the processing of his exchange before deactivating the currency, resulting in a loss of 156 million won ($112,477). Upbit is one of the largest crypto exchanges in South Korea.

The complaint, filed last week at the Seoul Central District Court, explains that on March 24, the investor tried to transfer 1,310 Luna coins to Vietnamese dong from his Ubit cryptocurrency wallet to a Finans wallet. On that day, the price of Luna, now known as Luna Classic (LUNC), was around $92.79 per coin. At the beginning of May, it was almost zero. A day after Binance informed an investor that his coins were withdrawn due to a problem in the exchange process. However, the coins do not appear in his Upbit wallet either. On questioning, Epit told him that his coins were accidentally deposited into Epit’s own crypto wallet and withdrawn through account verification procedures required by law. In South Korea, the law on the reporting and use of certain financial transaction information has been amended to reflect the Financial Action Task Force (FATF) travel law. On March 25, an amendment requiring virtual asset service providers (VASPs) in South Korea to verify information about the sender and receiver of crypto transactions went into effect.

The investor’s lawyer explained that his client asked Appit 27 times when his Luna coins would be returned to his wallet. Each time the exchange informed him that the withdrawal of coins was being processed. Dunamo newspaper reported that the company is investigating the details of the case. 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’s compliance with the terms.

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