70% of Korean Crypto Exchanges Fail to Repay Customers After Closure, Regulator Says

A joint research effort by Korean regulators — the Financial Supervisory Service (FSS) and Korea Financial Intelligence Unit (FIU) — has revealed that seven out of 10 cryptocurrency exchanges in South Korea failed to fully return investors’ money after ceasing operations. “And even if they did, just one or two employees were tasked with giving back the customers’ money, causing extreme inconvenience for customers,” the FSS stressed. This issue, affecting a significant number of crypto investors, highlights the lack of advance notice and insufficient staffing during the reimbursement process. With over 6 million Koreans engaged in cryptocurrency trading, the regulator has emphasized the need for enhanced regulations and strict compliance with upcoming laws to protect investors in the crypto market.