South Korea’s Crypto Exchange Shutdowns Leave 34,000 Investors to Recover $12.8 Million

Rep. Kang Min-kuk of the ruling People Power Party said this is because of the government’s regulation of the cryptocurrency market which has been rough in the past few years. The Korea Times reported on Thursday that the stranded funds can be retrieved through the Digital Asset User Protection Foundation.

South Korea’s Crypto Exchange Closures Leave $12.8M in Limbo for Customers pic.twitter.com/LBEY5qNEUZ

— Crypto Era (@_cryptoera_) October 24, 2024

34,000 Investors Can Reclaim Crypto Assets

This affects 33,906 investors who can now reclaim cashable and virtual assets from the shut down exchanges. The assets are 1.41 billion won ($1.02 million) in cash and 16.4 billion won ($11.8 million) in virtual assets. Total 17.8 billion won ($12.8 million).

Of the exchanges, Cashierest has the most stranded assets at 13 billion won ($9.4 million), followed by ProBit with 2.25 billion won ($1.63 million) and Huobi Korea with 579 million won ($420,000). Now these investors can recover their funds thanks to the new regulation that protects user assets in case of exchange collapse.

But there are still more concerns. Three other exchanges—Oasis, Flata Exchange and Btrade—are temporarily halted and 30.7 billion won ($22.2 million) in assets are stranded. Investors with funds in these exchanges are still in limbo as the platforms have not resumed operation yet.

Regulatory Crackdown as Crypto Markets are Uncertain

South Korea is tightening the noose on cryptocurrency market after years of high profile incidents including the infamous Do Kwon case which eroded public trust in the industry. Regulators acted fast and the Financial Services Commission (FSC) is leading the charge.

Rep. Kang said more crypto exchanges could be shut down or halted as FSC continues the renewal review. The recent regulation is part of the broader effort to crack down on illegal activities and increase transparency in the virtual asset market after a series of fraud cases and exchange collapse.

The recent surge in crypto trading on Korean exchanges, like Upbit and Bithumb, highlights growing interest and adoption in South Korea's market. $KRX $BEAM

— Puppeteer (@GorillaPodcast1) October 24, 2024

Summary:

• 11 crypto exchanges shut down in South Korea, 34,000 investors can reclaim $12.8 million in assets.

• Cashierest has the most stranded assets at $9.4 million, ProBit and Huobi Korea also have significant funds.

• 3 suspended exchanges—Oasis, Flata Exchange and Btrade—are holding $22.2 million in investor funds. More to come?

South Korea’s regulation is a warning to the global crypto market. Investors and exchanges must adapt to the new environment. For now, it’s all about asset recovery. But more closures and suspensions will leave more assets stranded. Stay informed and act fast to recover your stranded assets.