Eleven users of Upbit, one of South Korea’s biggest cryptocurrency exchanges, have filed a class action lawsuit against its owner, Dunamu Inc., seeking damages over a suspected technical failure, according to media outlet Chosun Biz.

Fast Facts:

  • The eleven plaintiffs transferred virtual currencies from their own e-wallets to Upbit’s e-wallet, only to find that the transactions were not successfully processed by Upbit, resulting in approximately US$538,000 of losses.
  • Upbit has acknowledged that the transfers were made, and that the transferred funds were not visible on its platform due to a technical problem. Upbit is regarded as one of South Korea’s safer, more stable platforms, and also one of a handful of exchanges expected to meet the rigorous standards of the country’s crypto exchange regulations ahead of the compliance deadline in September. The lawsuit may jeopardize Upbit’s ability to remain in operation if banks judge its platform to be insufficiently reliable.