South Korea's closed crypto services have left $15.1 million in user assets unreturned, with a recovery rate of 0.3%.

KuCoinFlash

Release Time: 05/12/2026 03:06:56

Summary

Real-world assets (RWA) news highlights a growing issue in South Korea, where 15 crypto services have shut down, leaving $15.1 million in user funds inaccessible. Over 1.95 million users are affected, with only $51,000 recovered. A lawmaker noted that current laws do not require firms to transfer assets, calling for stronger protections. While interest rate developments remain a backdrop, this incident underscores the urgent need for clearer regulations in the crypto space.

BlockBeats news, on May 12, according to Yonhap News Agency, data from the Financial Services Commission of South Korea shows that as of May 4, 15 virtual asset service providers in South Korea have ceased operations, affecting approximately 1.95 million users and leaving assets worth about $15.1 million stranded. The Korea Digital Asset Protection Foundation has so far assisted only 131 users in recovering assets, totaling approximately $51,000, or about 0.3% of the total stranded assets.

Lawmakers noted that current laws do not require service providers to shut down and transfer user assets, and that user protection mechanisms still need improvement.

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