South Korea Recovers Funds From Failed Crypto Exchanges

• Digital Asset Protection Foundation is receiving deposits from failed operators.
• The Foundation aims to protect the rights and interests of digital asset users.
• Deposits received from Apro Korea, Ten & Ten, Hanbitco, Qbit, and Pay Protocol AG.

South Korea’s Digital Asset Protection Foundation is now accepting deposits from crypto service providers that have shut down. The foundation recently announced that it has received deposits from five operators: Apro Korea, Ten & Ten, Hanbitco, Qbit, and Pay Protocol AG.

The foundation’s chairman, Kim Jae-jin, explained that this initiative aims to protect the rights and interests of digital asset users. He stated that the foundation will help digital asset exchanges meet their obligations to users when they close down.

In the meantime, the Foundation plans to finalize negotiations with up to eight terminating digital asset operators before the end of this year. Any operator satisfying the Foundation’s requirements will transfer customers’ won deposits it received. That process would precede the implementation of the real-name verification deposit and withdrawal system, which the firms would also transfer to the Foundation.

For the deposit transfer, the Foundation is targeting seven companies, including Apro Korea, Qbit, Porisdax Korea Limited, Pobble Gate, Prabang, Peertech, and Korea Digital Exchange. The cumulative deposit from these firms sums up to about 200 million won, according to the Foundation’s estimation.

Read also: Crypto Now Safer in South Korea Thanks to This New Foundation

However, the Foundation plans to return the virtual assets to the acclaimed owners after receiving requests and implementing identity verification routines. According to reports, the Foundation will temporarily accept asset inquiries and return requests via email. However, the process will shift to the Foundation’s website starting in January next year.

Many crypto community members welcome the initiative from the Digital Asset Protection Foundation, considering the crypto industry’s nature and the experiences of users who did not receive their funds from failed projects. Realizing the funds’ recovery would go a long way in boosting investors’ confidence in the digital asset industry.