South Korean crypto exchange Coinone successfully appealed a court ruling regarding a system glitch that allowed some users to withdraw bitcoin twice during a period of network congestion.
Case Background: Bitcoin Withdrawal Issues
A software bug in Coinone’s system misinterpreted slow transaction confirmations on the Bitcoin network as failures, leading to affected accounts being credited incorrectly, thus enabling repeated withdrawals of the same bitcoin.
Court Ruling: Repayment Mandate
The Seoul Western District Court ruled that users benefited from 'unjust enrichment' and ordered five customers to return the funds. The appellate court overturned a lower court's decision that partially blamed Coinone for the glitch, framing the delays as external network issues beyond the exchange's control.
Coinone's History: Previous Controversies
This is not the first time Coinone has faced scrutiny. Last year, former employees admitted to receiving kickbacks for listing certain tokens. In 2019, another court ordered Coinone to pay damages to a user whose account was hacked.
The Coinone situation highlights the significance of reliability in crypto exchange systems and the necessity for users to be aware of the risks associated with withdrawals during network congestion.
