Upbit and Bithumb compensate investors for the failure of the war law in 2024

• The proclamation of war law in South Korea on December 3, 2024 provided chaos for crypto exchanges such as Upbit and Bithumb.
• The crypto exchanges experienced downtime because the investors hurried to manage their assets.
• Upbit and Bithumb have agreed to compensate for service interruptions.

The proclamation of the law of war by President Yoon Suk Yeol on December 3, 2024 led to considerable disorders in various sectors, including the cryptocurrency market.

The announcement of President Yoon Suk Yeol, which is broadcast on television, was a reaction to the escalating political tensions and triggered widespread panic among the population. This fear led to a massive increase in commercial activities on the local cryptocurrency exchanges, since investors fought in view of the uncertainty to manage their assets.

This sudden increase in the commercial volume overloaded the servers of important cryptocurrency platforms such as Upbit and Bithumb.

Upbit, which usually manages around 100,000 simultaneous users, found that it served unprecedented users. Similarly, Bithumb and another stock exchange, coinone, recorded an increase in user numbers to over 500,000 each, which brought their systems across the capacity limit.

The result was considerable service failures. Upbit experienced a downtime of almost two hours, while Bithumb managed a little more than an hour and coinone was faced with an interruption of about 40 minutes.

These failures meant that investors could not access their funds or do business at a critical time, which led to considerable inconvenience and potential financial losses.

UPBIT and BITHUMB have promised $ 2.5 million as compensation

UPBIT and BITHUMB are aware of the effects on their users and have now committed themselves to compensate those affected.

Upbit has agreed to pay 3.14 billion South Korean WON, about $ 2.1 million, to process 596 cases in connection with the interruption.

bithumb, on the other hand, will distribute 377.5 million won or about $ 262,000 to edit 124 cases.

These compensation represent one of the greatest payments of cryptocurrency exchanges in the history of South Korea and reflect the seriousness of the situation.

The consequences of the failures of war law have caused the South Korean financial supervisory authorities to act. The on -site inspections have been resumed to ensure that the stock exchanges improve their infrastructure. Measures such as the server expansion, the transition to cloud services and the refinement of emergency plans are now a priority to prevent future service interruptions.