A cryptocurrency investor has reportedly sued South Korean cryptocurrency Upbit after the trading platform handled the transfer of Luna Coin before the crash. A Korean crypto exchange is investigating the details of the allegations.
Upbit is sued by Crypto Investor
Dunamu Inc., the company that operates the South Korean cryptocurrency exchange Upbit, has accused a crypto investor of a man in his 50s, Korea’s Joongang Daily reported on Monday.
Investor Apbit delayed the coin’s transfer before the coin’s collapse, resulting in a financial loss of 156 million won ($112,477). Apbit is one of the largest crypto exchange in South Korea.
The lawsuit, filed last week with the Seoul Central District Court, alleges that the investor attempted to transfer 1,310 Luna coins (LUNA) on March 24 from an Apbit cryptocurrency wallet to Vietnamese dong in exchange for the coins in a wallet held by Binance. On that day, the price of LUNA, now called Luna Classic (LUNC), was around $92.79 per coin. It dropped to zero in early May.
The next day, Binance informed the investor that the coins had been returned due to a problem with the transfer process. However, the coins do not appear in the Appbit wallet either. Upon inquiry, Appbit informed him that the coins were accidentally deposited in Appbit’s own crypto wallet and that their return was subject to accounting verification procedures as required by law.
In South Korea, the Financial Action Task Force (FATF) has amended the Act on the Reporting and Use of Certain Financial Transaction Information to reflect the Travel Act. The amendment took effect on March 25, requiring virtual asset service providers (VASPs) in South Korea to verify the sender and receiver information of crypto transactions.
The investor’s lawyer asked Appbit 27 times when his client would get his Luna coins back into his wallet. Each time the exchange told him that the refund of the coins was being processed.
Dunamu told the publication that the company is looking into the details of the lawsuit. However, Appbit’s terms of service state that the company will not be held responsible for any losses incurred by investors following the rules of the exchange.
Do you think the Korean crypto exchange should be held responsible for the investor’s losses in this case? Let us know in the comments section below.
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