South Korean Court: Exchange Must Cover User’s Stolen Cryptocurrency
Arising from this story, these are the issues/points that we ponder on:
It is not clear whether the exchange was sued in contract or negligence.
The court seem to have held that up to the daily withdrawal limit the exchange cannot be held liable. Since it allowed the withdrawal to exceed the daily limit, it is liable for the excess amount withdrawn.
What if the contract between the exchange and its clients contains a disclaimer clause that says that the exchange is not liable for any of the losses?
In the UK it is likely the Unfair Contract Terms Act applies and renders such a clause ineffective against a consumer who is not in equal bargaining position with the exchange. . Several other western countries follow the same principle.
If the exchange had taken a crptoinsurance policy, it is likely that whole loss would have been covered by the insurance.
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