According to industry sources, leading exchanges Upbit and Bithumb are currently accepting compensation applications through their customer service centers. (Photo: a screenshot from Upbit app)
SEOUL, Dec. 10 (Korea Bizwire) – Major South Korean cryptocurrency exchanges have initiated compensation procedures for service disruptions that occurred during the December 3 martial law crisis.
The exchanges are accepting compensation claims to minimize investor losses caused by access problems and delayed transactions, with some already having completed partial reimbursements.
According to industry sources, leading exchanges Upbit and Bithumb are currently accepting compensation applications through their customer service centers. Each exchange plans to independently determine compensation deadlines and scope, considering the unique circumstances of the crisis.
On the night of December 3, immediately following the martial law declaration, major domestic exchanges experienced service outages. Upbit and Bithumb were inaccessible for approximately one hour, while Coinone’s services were suspended for at least 30 minutes.
The disruptions occurred when their servers became overwhelmed by a sudden surge of investors attempting to buy and sell. During this period, Bitcoin prices on Korean exchanges plummeted to approximately 88 million won.
Compensation claims are expected to cover cases where investors attempted to place buy orders at market lows but failed due to service disruptions, or where delayed access prevented users from canceling sell orders, resulting in unwanted transactions.
Upbit has already completed compensation for some approved claims. “We are providing guidance on how to submit compensation applications, and we have already processed compensation for several cases,” an Upbit representative said.
While Bithumb is currently accepting applications, it is still discussing internal criteria for compensation. Coinone has not yet begun accepting claims or conducting internal reviews.
Legal experts suggest that pursuing legal compensation beyond the exchanges’ voluntary reimbursements may be impractical. “It would be difficult to hold exchanges legally liable for trading delays caused by excessive traffic during an unpredictable situation like martial law,” said Yang Tae-jung, an attorney at Gwangya Law Firm.
Industry experts emphasize the need for practical countermeasures against similar future incidents. “Exchanges need to improve their traffic monitoring capabilities through regular service load testing,” an industry official said, adding that “the Financial Services Commission should establish clear compensation guidelines to protect users.”
Kevin Lee (kevinlee@koreabizwire.com)
