Court Ruling and Compensation Amount
The Seoul Southern District Court in South Korea has ruled that Cross Finance, an online investment financial company, must pay approximately $234,000 (about 300 million won) in compensation to cryptocurrency exchange Coinone. According to the court documents, at the recommendation of a Cross Finance representative identified as Kwak, Coinone began subscribing to Cross Finance's affiliated investment products starting November 2023, maintaining an investment scale ranging from 1 billion to 4 billion won over a long period.
Investment Default and Related Fraud Case
The investment product experienced its first repayment delay on August 5, 2024, with defaults worsening thereafter. Reports indicate that Cross Finance's default is directly linked to a 70 billion won fraud case involving Lumen Payments. Following the incident, Coinone sought to rescind the relevant contracts with Cross Finance on grounds of fraud or material mistake. Previously, Coinone had filed a lawsuit against Cross Finance seeking the return of approximately 900 million won in unjust enrichment, a case that remains ongoing.
This court ruling further clarifies Cross Finance's legal liability in the recommendation and subsequent default of investment products, providing a reference case for legal disputes between cryptocurrency exchanges and third-party financial institutions. Coinone stated it will take follow-up legal actions based on the judgment to protect its interests.