Search ForexCrunch

A South Korean court has ordered crypto exchange CoinOne to pay a customer who lost  47.7 million won in December 2018.

CoinOne needs to pay back  25 million won (around $21,000) to the plaintiff.  According to local  reports, the customer claimed that the daily transfer limit of 20 million won should have prevented all of his funds from being lost. He said that basic security, which should have been enforced by the exchange such as blocking access to overseas IP addresses, should have safeguarded his account and that they were not set sufficiently.

CoinOne said in their defence  that they were  not obligated to secure the transaction as it did not leak or collect personal information. They also added that the transactions exceeding the withdrawal limit were only in violation of South Korean government policy, and not the exchange’s regulations itself.

The court finally ruled that while CoinOne failed to block the foreign IP address but the company  could not be held accountable. This is due to the fact that  it is not necessary to block an address unless there is a suspicion of illegal activity.  

They did, however, rule that the withdrawal cap should be introduced as part of the exchange’s  policy, holding CoinOne accountable and ordering them to pay for the losses.

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.