When it comes to rules and regulations surrounding cryptocurrencies, South Korea is the country that shows no flexibility to the industry. In the past couple of years, South Korea has made many changes and developments in the cryptocurrency sector. The country has been supporting the adoption of crypto-blockchain technology on a domestic as well as enterprise level.
However, the country also wants to ensure that all the sectors adopting cryptocurrencies are fully compliant with regulations. This is the reason why the South Korean government is strict and is always observing the adherence level of cryptocurrency firms in the country.
On top of that, the regulators in South Korea also ensure that the rights and assets of the civilians are always protected. If it is the citizens that are liable for penalties, rewards, or compensations by the crypto-firms, then it will take the necessary steps to ensure it happens. However, the regulators in South Korea protect the same rights of cryptocurrency firms when it is their rights on the line.
Recently, the South Korean authorities have set yet another example where they have taken the matters into their own hands to deliver justice to the users affected by a cryptocurrency incident.
According to sources, a court from South Korea has just issued an order to Bithumb cryptocurrency exchange. Bithumb is one of the most prominent and largest cryptocurrency exchanges that is based in South Korea.
It has been revealed that the South Korean court has ordered the exchange to compensate the users who were impacted by an incident back in 2018. The users had become a victim of an incident that ended up with the accidental withdrawal of funds.
The court has issued orders to the exchange that it needs to pay the users who ended up losing their cryptocurrencies. The problem arose when the users tried to transfer their funds to third-party wallets but the funds ended up being transferred to an unknown wallet.
According to one of the on-chain reporting firms ‘Fn News’, there were a total of six customers that reported the incident to the authorities. They brought the case in the notice of the Seoul Central District Court that let its 15th Division of the Civil Agreement look into the matter.
The users reported that Bithumb had announced the launch of a new feature that let users transfer their funds to third-party wallets. Therefore, when the users tried doing that, their Bitcoin (BTC) ended up being sent to an unknown wallet. The users reported that they still have not been given any details about the wallet owner from the exchange.
The six users also assured the court that Bithumb was not wrong here as the exchange also admitted that they had faced technical issues with the newly launched service.