The Court’s Decision: A Win for Investors
In a landmark ruling on January 13, the South Korean Supreme Court decided that Bithumb, the nation’s largest cryptocurrency exchange, must cough up damages to 132 beleaguered investors. This all stemmed from a pesky 1.5-hour service outage that occurred back in November 2017. The total damages soared to an eye-watering 251.4 million won, which translates to around $202,400. And oh, the payout ranged from $6 to a staggering $6,400!
A Brief Trip Down Memory Lane
Picture this: Nov. 12, 2017, the scene of a digital heist. Bithumb’s systems buckled under the pressure as the volume of orders unexpectedly surged, leading traders to panic as prices for digital currencies like Bitcoin Cash (BCH) and Ethereum Classic (ETC) plummeted. Investors naturally wanted answers, and it turned out—after much back-and-forth—that the Supreme Court had their back.
Who Takes the Blame?
The court firmly stated that “The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service.” A bold declaration, but shouldn’t we all feel a twinge of justice here? After all, wouldn’t you be a bit miffed if your internet provider blamed you for their lack of service?
Bithumb Under the Microscope
Bithumb isn’t just facing disappointed investors; the exchange finds itself under the scrutiny of various local authorities. Following the ruling, a fraud investigation targeting the former chair is ongoing, not to mention the unfortunate passing of a major shareholder amidst embezzlement allegations. Talk about a turbulent roller coaster!
Stricter Regulations Ahead?
As if Bithumb’s troubles weren’t enough, the exchange is currently being rocked by a “special tax investigation” led by the National Tax Service of South Korea. Recent raids raise the eyebrows of many, hinting at potential tax evasion. On top of this gloom, a broader crackdown on local cryptocurrency regulations is tightening its grip. After the chaos surrounding the FTX scandal, the city of Busan decided to ditch plans of partnering with foreign crypto exchanges. The regulators seem dead set on cleaning house in the crypto world.
