Upbit System Glitch Damages Lawsuit: Why the Court Didn't Rule in Favor of the Investor?

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Regarding the Upbit order delay controversy that occurred immediately after the declaration of martial law, the court did not recognize Dunamu, the exchange operator's, liability for damages. The court ruled that it was difficult to conclude that there was operational negligence, considering the rapidly changing market situation and order processing at the time.

According to legal sources on the 27th, the Seoul Central District Court ruled against the plaintiff in a lawsuit for damages filed by Upbit user Mr. Cho against Dunamu. The incident occurred in December 2024, immediately after the declaration of martial law, when cryptocurrency market volatility rapidly expanded.

Mr. Cho claimed that during the process of selling XRP (Ripple) he held at the time, order delays and screen errors occurred. He then demanded compensation from Dunamu, stating that he incurred significant losses as transactions were executed at a lower price than expected.

However, the court determined that it was necessary to consider the situation at the time, when rapid price fluctuations and large-volume orders occurred simultaneously. The court viewed it as difficult to conclude that an order should have been executed normally at a specific price based solely on the data submitted by the investor.

Furthermore, based on circumstances such as multiple sell requests being made, it was explained that it is difficult to see the order execution as having proceeded completely unrelated to the user's intention. The possibility that the exchange system experienced a processing burden amidst unexpected market shock was also mentioned.

The court also ruled that it was difficult to consider Dunamu as having a duty to foresee and prepare for special situations or surges in orders like those at the time. Accordingly, the court did not recognize any violation of management duties or liability for negligence in the exchange's operation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*