Upbit and Bithumb will compensate $2.40 million due to system failures during the state of emergency.

According to reports from the Korea Herald, two major cryptocurrency exchanges in South Korea, Upbit and Bithumb, will compensate investors a total of approximately 3.50 billion Korean won (2.40 million USD) due to a system failure during the state of emergency on December 3 of last year. Upbit is involved in 596 compensation cases, amounting to 3.15 billion Korean won (approximately 2.20 million USD); Bithumb is involved in 124 compensation cases, totaling 378 million Korean won (approximately 264 thousand USD). This marks the highest single compensation amount and number of cases in the history of South Korean exchanges. The system failure was triggered by a surge in users, with Upbit having 1.10 million users online simultaneously and Bithumb exceeding 500 thousand, which led to partial trading suspensions and failed fund transfers. South Korean financial authorities have requested the exchanges to submit plans for server expansion, emergency plans, and other improvements, and have initiated on-site inspections.