South Korea’s Crypto Exchange Closures Leave $13M in Investor Assets Inaccessible

Title: South Korea’s Crypto Exchange Closures Leave $13M in Investor Assets Inaccessible

The closure of multiple cryptocurrency exchanges in South Korea has left more than 33,000 investors unable to access nearly $13 million in digital assets, with potential for this figure to grow as more platforms suspend operations.

According to a report by The Korea Times on October 14, 14 cryptocurrency exchanges in South Korea have either shut down or temporarily suspended their services in response to new regulatory requirements under the Virtual Asset User Protection Act. As a result, about 17.8 billion won ($12.8 million) in customer assets remain locked on these platforms.

This data, shared by Representative Kang Min-Kuk of the ruling People Power Party, reveals that 33,906 users are currently trying to reclaim their frozen funds. Of the affected exchanges, 11 have ceased operations completely, while three others have paused their services temporarily.

Among the exchanges, Cashierest—one of the platforms that closed in 2023—holds the largest share of customer assets, with approximately 13 billion won ($9.4 million) in digital assets. ProBit follows, with 2.25 billion won ($1.6 million) locked up, and Huobi holds around 579 million won ($419,000).

In addition to the assets tied up in permanently closed exchanges, approximately 30.7 billion won ($22 million) is frozen on exchanges that have temporarily halted services. These include Oasis, with 16.2 billion won ($11.7 million), Flata, with 14.35 billion won ($10.3 million), and Btrade, holding 80 million won ($58,000). The inclusion of these temporarily halted exchanges could potentially increase the total number of customers with inaccessible funds, though the full impact is not yet clear.

Representative Kang emphasized that ongoing efforts to enforce regulatory compliance could cause more platforms to suspend services, potentially increasing the number of investors with frozen assets.