ncrypt | web3 research

The two largest cryptocurrency exchanges in South Korea, Upbit and Bithumb, will pay their users compensation for technical failures that occurred during the introduction of military provisions in December 2024. Then, due to the announcement of the arrest of the President of South Korea, a sharp jump in traffic was observed on the exchanges. Upbit's user base quickly grew from 100,000 to over 1.1 million, causing a 99-minute outage. Bithumb's outage lasted 62 minutes, during which time some investors were unable to trade or withdraw funds, losing their money. as the price of many cryptocurrencies, including Bitcoin, has fallen sharply. In total, the exchanges will pay out more than 3.5 billion won (approximately $2.5 million) to customers, which will be a record compensation in the entire history of the South Korean crypto industry. Upbit and Bithumb will be under the supervision of the Financial Supervisory Authority of South Korea when paying compensation.