Regulation

Exchange Bithumb forced to compensate users for service interruptions

Over one hundred customers filed a lawsuit against the largest cryptocurrency exchange in South Korea, Bithumb. The customers claimed that their financial losses were the result of Bithumb’s service outage. However, the South Korea’s supreme court ruled in favor of Bithumb paying damages to the customers. Customers of Bithumb can seek compensation for a service outage after the company was ordered to do so.

The South Korean supreme court recently finished a case regarding the malfunction of country’s largest cryptocurrency exchange, Bithumb, according to Yonhap.

The court ordered Bithumb to pay $203,120 in damages to 132 investors who filed a lawsuit against the crypto exchange operator. During a service outage, the court ruled that Bithumb had intentionally caused emotional distress to its investors.

The lawsuit stated that low order volumes impacted the speed of transactions on November 12, 2017. This was due to the outage of a cryptocurrency trading platform; the plaintiffs claimed they lost financial resources as a result. Among the coins mentioned in the suit was Bitcoin Cash and Ethereum Classic. Investors sued Bithumb for $8 million after a district court ruled in their favor. An appellate court then overturned this decision and ordered Bithumb to pay the investors between 8,000 Won and 8 Million Won in damages.

Bithumb’s supreme court allowed this decision to stand on Thursday. The court of additional review stated that > This information comes from the appellate court:

“Technological failures should be financially burdened to the service provider, not the consumers who paid commission for the service”.

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