Upbit Recovers 20,000 Cases of Incorrect Deposits Over 4 Years

93.2% Recovery Achieved Among Over 2,000 Reports

On the morning of the 3rd, the prices of Bitcoin and altcoins were displayed on the electronic board at the Upbit Lounge, a cryptocurrency exchange in Gangnam-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Domestic virtual asset exchange Upbit has corrected over 20,000 cases of cryptocurrency misdeposit incidents.

Upbit announced on the 11th that it has restored 20,539 cases (93.2%) out of a total of 22,033 misdeposit recovery requests over the past four years. Typically, misdeposit incidents occur when the address is incorrectly entered or the wrong network type is selected during withdrawal of digital assets to another wallet. For example, an investor may mistakenly enter the wrong wallet address while transferring cryptocurrency from an account at another exchange to a virtual asset wallet within their Upbit account. Alternatively, even if the wallet address is entered correctly, if the wrong 'chain (network)' type used for withdrawal is selected, the cryptocurrency transferred from the Upbit account will not be confirmed.

If the incorrectly entered wallet address is held by another Upbit member, Upbit obtains consent and returns the assets to the original owner. However, if the wallet address is the same but the chain type differs, the assets have been sent to a network that Upbit cannot access, so the misdeposit cannot be recovered.

An Upbit official explained, "Misdeposited digital assets are never included in Upbit's assets under any circumstances," adding, "We have deployed top-level responsible personnel in the industry and actively communicate with members to recover misdeposits and implement preventive measures."

Upbit plans to continuously develop related measures to safely recover additional misdeposits in the future. Along with this, efforts to prevent misdeposits include ▲content introducing types of misdeposits and prevention methods ▲guidance on precautions on the deposit screen ▲various prior notices. An Upbit official urged, "By attempting a small deposit first and verifying the address system and chain (network) type of the digital asset before depositing, misdeposit damage can be prevented," and added, "If there is concern about misdeposit occurrence, be sure to check with the customer center of the withdrawal exchange."