A South Korean court has ruled in favor of cryptocurrency exchange Coinone, ordering users to repay bitcoin erroneously withdrawn multiple times due to a 2018 system glitch. The Seoul High Court classified the duplicated withdrawals as "unjust enrichment without legal basis", upholding Coinone's claim for full restitution.
The 2018 Coinone Exchange Incident
The technical error occurred when Coinone's system mistakenly restored user account balances despite not receiving blockchain confirmation responses. This allowed some users to repeatedly withdraw bitcoin from the same transaction.
Key details of the case:
- Exchange: Coinone (one of South Korea's largest crypto platforms)
- Timeframe: Glitch originated in 2018; litigation concluded in July 2025
- Court's rationale: Users retained assets without proper transactional justification
- Precedent: First major Korean ruling on crypto withdrawal errors
👉 How exchanges prevent double-spending attacks
Legal and Industry Implications
The verdict sets an important benchmark for:
- Exchange accountability: Technical flaws ≠ user entitlement
- Asset recovery: Courts will enforce repayment of erroneously transferred crypto
- System safeguards: Highlights need for robust withdrawal confirmation protocols
| Factor | Court's Consideration |
|--------|----------------------|
| Fault | Deemed external/uncontrollable |
| User Action | Active withdrawal attempts |
| Outcome | Full repayment ordered |
FAQs
Q: Could users face criminal charges?
A: No evidence of malicious hacking—this was a civil case about asset recovery.
Q: How often do such glitches occur?
A: Extremely rare; most exchanges have multi-layer confirmation systems.
Q: What protections exist for users?
A: Reputable exchanges use cold storage and multi-sig wallets to prevent such errors.
👉 Learn about secure crypto storage methods
The ruling reinforces that crypto assets follow property law principles, even when technical errors occur. Exchanges and users must both prioritize transaction verification protocols.