A South Korean court ordered one of the largest domestic cryptocurrency exchanges to compensate victims of the “accidental withdrawal” incident in 2018. Bithumb has been ordered to pay customers who paid to withdraw bitcoin funds to an unknown wallet.

The funds eventually fall into the wallet, the owner is unknown

According to Fn News, six Bithumb customers submitted the case to Division 15 of the Civil Agreement of the Seoul Central District Court. They claimed that the exchange provided them with incorrect information regarding the withdrawal of funds in November 2018.

Due to a series of alleged errors, the user sent Bitcoin (BTC) to an unknown wallet. The victim hopes to transfer their cryptocurrency from Bithumb wallet to a third party through the function provided by the exchange.

But according to Judge Min Chengzhe, the operation went wrong because Bithumb’s system did not transfer the funds to a third-party wallet. According to the Seoul court, in fact, their funds were deposited in a wallet, and the identity of the owner of the wallet is still unknown.

The victims claimed that Bithumb’s customer service told them there was nothing wrong with the exchange, even though the company knew it was a mistake.

As a result of a video posted on YouTube, the case became popular all over the country. Due to an error in the video posted by the victim, the Korean IT community quickly spread the video.

Victim compensation sparks controversy

Judge Min said during the trial:

It is difficult to say that the defendant has fulfilled the precautionary obligations under the paid lease contract, such as failing to perform the obligation to verify the identity of the withdrawal address requested by the plaintiff and the withdrawal address sent to the defendant’s server.

Initially, the victim asked for compensation of US$1 million, but the judge decided to pay the compensation at the price of Bitcoin (US$4,550 to US$4,650) on the day of the incident. Considering the current Bitcoin price, this decision caused controversy among the victims.

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As of press time, Bithumb has not yet commented on the court’s ruling.

What do you think of the court’s decision? Let us know in the comments section below.

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