- 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 liable for any losses of their customers.
South Korean crypto exchanges Upbit and Bithumb have made headlines again today. Both of them come to an agreement to pay around $2.4 million to users as compensation. This is to cover the losses that incurred due to network outages on December 3, 2024, Martial day of South Korea. This marked the largest compensation ever in the history of South Korean crypto exchanges.
As per the news report from local news reporter Yonhap News Agency, both Upbit and Bithumb pay 3.5 billion won, which is also $2.4 million USD, to their customers for virtual asset exchange computer failure occurred on the Martial day of South Korea.
The compensation provided by the exchanges is based on the internal regulations of each exchange. And, it is difficult to determine the actual losses incurred by users and whether investor protection is being properly implemented with this arrangement. To avoid such cases, South Korean financial authorities are keeping an eye on exchanges’ implementation of compensation payments and improvement plans.
Upbit and Bithumb to Pay Record Amounts of Compensation to Users
As per the data submitted by a member of the National Assembly’s Political Affairs Committee to the Financial Supervisory Service today, the two major crypto exchanges agreed to pay compensation to users.
Upbit will pay 3.1 billion won, which is around 2.2 million USD, to compensate for 596 system failures. On the other hand, Bithumb will pay around 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 issue and are not paying any compensation to their customers.
Though this is not the first time these crypto exchanges are paying 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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