Investors Suffering Losses from Upbit System Failure to Receive 3.1 Billion KRW Compensation

Compensation for Approximately 2,400 Cases Since 2017

[Asia Economy Reporter Minwoo Lee] Domestic cryptocurrency exchange Upbit has compensated investors with 3.1 billion KRW for damages caused by system failures over the past four years.

On the 13th, Dunamu, the operator of Upbit, announced that it had compensated a total of 3.1 billion KRW for 2,397 cases of losses due to temporary service disruptions since Upbit's launch in 2017.

This year alone, a total of 1,207 cases were reported, and 1.7 billion KRW was compensated for 80% (996 cases) of them. This includes compensation for trading disruptions caused by excessive trading volume after Dogecoin was listed on Upbit's KRW market in February.

As of the previous day, 16 compensation requests had been received following an emergency server inspection on the morning of the 11th due to a suspension of price display. Upbit plans to review and compensate according to its investor damage compensation policy.

Since its launch, Upbit has established and implemented an investor damage compensation policy. The policy distinguishes situations such as ▲compensating the difference if a buy order is canceled due to a change of mind but is not canceled due to a failure (partial compensation may apply if investor judgment is involved and selling takes some time) ▲compensating the difference if a re-order is executed at a higher price due to a failure during buy order reception ▲compensating the difference if an unwanted repurchase occurs because a sell order was not canceled due to an error while unfilled ▲compensating the difference if a sell order was not received due to a service failure and was re-sold at a lower price ▲paying the difference between the attempted sell amount and the lower executed sell price if the sell order itself could not be entered due to a system error.

However, all cases require objective confirmation of the investor's intention to buy or sell, and orders or requests processed first during order stabilization operations are excluded.

Additionally, Upbit operates a "rapid compensation processing process" that provides results on whether compensation will be made within 60 days from the date of receipt for compensation requests submitted by midnight on the seventh day after the failure occurred.

An Upbit official stated, "We will make every effort to fundamentally prevent failures in the future and take the lead in creating a safe investment environment."