Coinone Wins Appeal to Recover Doubled Withdrawn Bitcoin from Customers
Coinone successfully appealed a ruling requiring five customers to return bitcoin (BTC) withdrawn twice due to a 2018 software glitch. Key points include:
- The Seoul Western District Court determined the traders experienced "unjust enrichment" as they withdrew funds after the first withdrawal was processed.
- The issue arose from Coinone’s software mistakenly flagging slow Bitcoin confirmations as failed and replenishing user accounts.
- Increased congestion on the Bitcoin network at that time led to high transaction fees, peaking at $55.
- A lower court initially held Coinone partially accountable but the appeal found the network delay was an external factor, absolving Coinone of loss liability.
Coinone has faced scrutiny recently; former employees were involved in bribery for token listings, admitting to receiving around $1.46 million.