Bithumb Exchange Ordered to Pay $202,400 in Damages to 132 Customers

• South Korean Supreme Court has ordered Bithumb exchange to pay damages to 132 customers affected by a service outage.
• The exchange is supposed to pay $202,400 (251.4 million won) in damages, ranging from $6 to $6,400.
• Initially, a district court had ruled against the customers before the matter was moved to the Supreme Court which overturned the earlier ruling.

The South Korean Supreme Court has recently ordered Bithumb, the largest cryptocurrency exchange in South Korea, to pay damages to 132 customers affected by a service outage on January 12, 2023. Bithumb had a one and a half hour outage on the day in question that caused customers to lose funds.

The Supreme Court ruled that Bithumb exchange should pay damages equivalent to $202,400 (251.4 million won) with customers being paid as little as $6 to as much as $6,400. According to the final ruling by the Supreme Court, 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.

The matter initially went to a district court which ruled against the customers before the matter was moved to the Supreme Court which overturned the earlier ruling and issued a final ruling on the matter. The service outage was caused by a sudden surge in the average amount of orders per hour coupled with bottle-necked transaction flows.

Bithumb has been ordered to pay out the damages to the affected customers as per the ruling by the Supreme Court. This is a precedent setting ruling as it sets the tone for how cryptocurrency exchanges should handle service outages in the future. It is also a reminder for exchanges to invest in better technology and infrastructure to ensure smooth operations.

The ruling is a win for customers as it ensures that they are compensated for their losses in case of any service outages. It is also a reminder that customers should take necessary precautions while dealing with cryptocurrency exchanges and be aware of their rights as customers.

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