Court Rules Upbit Must Compensate LUNC Investor Over Pre-crash Transaction
A South Korean court has ordered Dumamu, the operator of the crypto exchange Upbit, to compensate a customer for delaying a LUNC transfer just before the Terra ecosystem crash.
The unidentified customer was described as a resident of Vietnam aged in his 50s. The man originally filed a lawsuit at a branch of the Seoul Central District Court in September 2022.
LUNC, also known as Terra Classic or Terra LUNA Classic, was formerly known as LUNA. The coin was delisted in South Korea shortly after the May 2022 crash.
Hanguk Kyungjae reported that the civil division of the same court ruled in the investor’s favor.
The presiding judge, Justice Park Jae-min ordered Dunamu to pay the man “approximately 147 million won (around $107,000).”
Park also ordered Dumanu to make “late payment interest” reparations. The crypto exchange operator has the legal right to appeal the verdict at the High Court.
The court heard that on March 24, 2022, the man tried to transfer LUNC 1,310 from an Upbit wallet to a wallet on the Binance platform.
He was hoping to liquidate the money and “cash it out” into fiat (Vietnamese dong).
But the man explained that Binance told him that the LUNC coins had been sent back after a “transfer problem.”
When he checked his Upbit wallet, he was unable to find the coins. The court heard that this was due to the fact that the customer had failed to enter all the appropriate wallet address details in his original transfer request.
As such, the tokens ended up in Upbit’s crypto wallet, rather than his own wallet on the Upbit platform.
South Korea’s current account recorded the biggest surplus in more than six years, boosted by global demand for chips used in AI https://t.co/BuFVsgt7OD
— Bloomberg (@business) August 7, 2024
The
