Monday, December 5, 2022
 

Upbit Faces Lawsuit After Loss Due to Crypto Transfer Delay

  • Crypto investor sued Dunamu Inc. alleging that the company’s delay in processing a crypto transfer resulted in a loss.
  • Upbit was questioned 27 times about the whereabouts of the investor’s loss of LUNA coins.
  • Investor claims that due to Upbit’s delay, he could not convert the LUNA coins before LUNA’s crash in May.

A crypto investor sued Dunamu Inc., which operates a South Korean crypto exchange Upbit, alleging the company’s delay in processing a transfer of 1,310 LUNA coins resulted in a loss worth $113,700.

According to Korea JoongAng Daily, a crypto investor, who is identified as a man in his 50s, filed a lawsuit with Seoul Central District last week. In the lawsuit, the investor explained that he attempted to transfer the LUNA coins in March from his Upbit wallet to his Binance wallet, in order to exchange it for Vietnamese Dong, the currency of Vietnam.

But, Binance returned the LUNA coins due to an error faced in the transfer process. When the investor checked if he had received the LUNA coins, the crypto coins were not in his wallet. The investor questioned Upbit about the error. Upbit mentioned that the investor’s LUNA coins had been accidentally deposited in Upbit’s own crypto wallet and were held up due to account verification procedures mandated by law.

According to the Travel Rule implemented by the Financial Action Task Force (FATF), virtual asset service providers (VASPs) and financial institutions must verify the sender and recipient information in virtual asset transactions. 

Furthermore, the crypto investor’s lawyer mentioned that Upbit was questioned 27 times about the whereabouts of the investor’s LUNA coins. Upbit responded that the return of the LUNA coins was “being prepared”.

The investor claimed that due to Upbit’s delay, he could not convert the LUNA coins before the cryptocurrency’s crash in May.

The judge hearing the case claimed the lawsuit was to check “whether Dunamu has any unavoidable circumstance that reasonably prevented it from taking action regarding the man’s request”.

Currently, Dunamu Inc. claims the organization is investigating the lawsuit, but the company’s terms of use states that it is not responsible for any losses incurred by clients.

  • Crypto investor sued Dunamu Inc. alleging that the company’s delay in processing a crypto transfer resulted in a loss.
  • Upbit was questioned 27 times about the whereabouts of the investor’s loss of LUNA coins.
  • Investor claims that due to Upbit’s delay, he could not convert the LUNA coins before LUNA’s crash in May.

A crypto investor sued Dunamu Inc., which operates a South Korean crypto exchange Upbit, alleging the company’s delay in processing a transfer of 1,310 LUNA coins resulted in a loss worth $113,700.

According to Korea JoongAng Daily, a crypto investor, who is identified as a man in his 50s, filed a lawsuit with Seoul Central District last week. In the lawsuit, the investor explained that he attempted to transfer the LUNA coins in March from his Upbit wallet to his Binance wallet, in order to exchange it for Vietnamese Dong, the currency of Vietnam.

But, Binance returned the LUNA coins due to an error faced in the transfer process. When the investor checked if he had received the LUNA coins, the crypto coins were not in his wallet. The investor questioned Upbit about the error. Upbit mentioned that the investor’s LUNA coins had been accidentally deposited in Upbit’s own crypto wallet and were held up due to account verification procedures mandated by law.

According to the Travel Rule implemented by the Financial Action Task Force (FATF), virtual asset service providers (VASPs) and financial institutions must verify the sender and recipient information in virtual asset transactions. 

Furthermore, the crypto investor’s lawyer mentioned that Upbit was questioned 27 times about the whereabouts of the investor’s LUNA coins. Upbit responded that the return of the LUNA coins was “being prepared”.

The investor claimed that due to Upbit’s delay, he could not convert the LUNA coins before the cryptocurrency’s crash in May.

The judge hearing the case claimed the lawsuit was to check “whether Dunamu has any unavoidable circumstance that reasonably prevented it from taking action regarding the man’s request”.

Currently, Dunamu Inc. claims the organization is investigating the lawsuit, but the company’s terms of use states that it is not responsible for any losses incurred by clients.

 

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