Bithumb Has To Repay $200,000 For Customers Affected By Service Outage

Key Points:

Bithumb has to repay more than 100 users about $200,000 due to the service outage.
The crash on November 12, 2017, caused the prices of several cryptocurrencies to plummet.

Bithumb has to repay more than $200,000 to 132 investors affected by the 2017 outage, the Korean supreme court has ruled.

South Korea’s Supreme Court has issued a final judgment on the case related to the Bithumb cryptocurrency exchange service interruption. The court ordered Bithumb to pay 251.4 million won ($203,120) in damages to 132 investors who filed a lawsuit against the crypto exchange operator after the service was down, according to Korean media.

More than a hundred investors have filed a lawsuit against the crypto exchange operator, saying they suffered financial losses due to the service outage, in which substantial discounts damaged cryptocurrencies such as Bitcoin Cash and Ethereum Classic.

Trading service at Bithumb was suspended for an hour and a half on November 12, 2017, after the average number of orders per hour immediately doubled to increase trading volume.

A district ruled against the investors, but the appeals court later overturned the ruling, ordering the Bithumb operator to pay damages ranging from 8,000 won to 8 million won to each of the 132 investors. The Supreme Court finalized the judgment on January 12.

“The burden or the cost of technological failures should be shouldered by the service operator, not services users who pay commission for the service.”

The appellate court ruled at that time.

Recently, this largest Korean cryptocurrency exchange has constantly been facing legal troubles, and its leaders are under suspicion of price manipulation and embezzlement.

The report said that tax officials are also investigating possible tax evasion by examining domestic and international transactions conducted by Bithumb Korea, Bithumb Holdings, and their affiliates. The 4th Investigation Bureau of the Seoul Regional Tax Service, a division within the NTS, leads the investigation.

This is not the first time Bithumb has faced a tax investigation. NTS opened an investigation into this company in 2018 and collected 80 billion won ($64 million) in income tax.

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