Angry S. Korean investors prepare for legal suite against crypto exchange company

Park Sae-jin Reporter() | Posted : Febuary 7, 2018, 18:29 | Updated : Febuary 13, 2018, 16:02

[This screenshot was captured from UPbit's website]

SEOUL, Feb. 07 (Aju News) --  Angry South Korean investors are ready to take what is known to be the first legal action against a local cryptocurrency exchange, insisting their accounts were banned without any pre-notice, leading to financial losses.

UPbit, a troubled exchange, notified investors at the end of last month that it has blocked 19 accounts after finding out unusual cases and transaction that included "creating a disturbance in the market by making imaginary orders" using tools unprovided by the exchange. It also threatened to monitor users to protect innocent investors.

Industry officials said Wednesday that tens of cryptocurrency investors are organizing a damage suit against UPbit. They claimed that they could do nothing but sit and watch a free fall in cryptocurrency prices.

"I will dearly receive my punishment if I have taken any actions violating UPbit's terms. They should know I am telling the truth if there is an investigation," one banned investor told Aju News on condition of anonymity.

The investor insisted he suffered massive damages after having his account banned and blocked from all transactions. He said that when he visited the office of UPbit, he was just told to wait for a call from the company's legal team. Other investors criticize UPbit's work process, claiming the exchange should have converted virtual money into real currency before imposing a ban.

Lawyer Yoon Jae-seon said UPbit has violated the private ownership of property, describing it as a very serious matter that would take more than a year to settle.
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