Coinone, a South Korean digital asset exchange, supported approximately 7.5 billion won in refunds for voice phishing and telecommunications fraud victims over the past three years from October 2023 to September 2026. The exchange collaborated with the Seoul Metropolitan Police Agency to directly refund about 2.47 billion won across 83 cases, while its partnership with Kakao Bank facilitated 5.01 billion won in refunds across 412 cases. Before the revised Communications Fraud Victim Refund Act took effect on October 1, digital asset exchanges were not classified as financial institutions, leaving no formal procedure to verify victim information or process refunds despite freezing accounts upon fraud reports.
Coinone Refunded 7.5 Billion Won Through Dual Channels
According to Coinone on the 27th, the exchange directly refunded approximately 2.47 billion won across 83 cases in cooperation with the Seoul Metropolitan Police Agency from October 2023 to September 2026. Through its real-name account partner Kakao Bank, Coinone supported refunds of approximately 5.01 billion won across 412 cases by establishing a victim compensation procedure with the bank.
Seoul Police and Kakao Bank Enabled Pre-Revision Refunds
Coinone stated that before the revised Communications Fraud Victim Refund Act took effect on October 1, digital asset exchanges were not classified as financial institutions, leaving no procedure to verify victim information and process refunds. Even after restricting account access upon receiving fraud reports to prevent further fund outflows, returning victim funds remained difficult. Prolonged non-refund periods raised concerns that victims' rights to relief could expire due to statutes of limitations. The Seoul Metropolitan Police Agency tracked account transaction records and fund flows to locate victims, while Coinone established procedures with investigative authorities for calculating and refunding victim compensation. Through this collaboration, Coinone returned funds that had remained at the exchange for extended periods to most eligible victims before the 2024 Digital Asset User Protection Act took effect.
Coinone Transitioned to Direct Refund Procedures After October 1
From October 2024, Coinone operated a hotline with Kakao Bank and supported victim compensation through the bank's refund procedures. After the revised law took effect on October 1, 2026, Coinone transitioned to directly managing victim relief procedures. A Coinone User Protection Team official stated that the exchange will continue to cooperate closely with relevant authorities to ensure victim funds are returned promptly even after the revised law's implementation.
FAQ
What refund support did Coinone provide for voice phishing victims over three years?
Coinone supported approximately 7.5 billion won in refunds for voice phishing and telecommunications fraud victims from October 2023 to September 2026. The exchange directly refunded about 2.47 billion won across 83 cases through collaboration with the Seoul Metropolitan Police Agency, and facilitated 5.01 billion won in refunds across 412 cases via its partnership with Kakao Bank.
How did Coinone process refunds before the revised Communications Fraud Victim Refund Act took effect?
Before the revised act took effect on October 1, digital asset exchanges were not classified as financial institutions and had no formal procedure to verify victim information or process refunds. Coinone collaborated with the Seoul Metropolitan Police Agency, which tracked transaction records and fund flows to locate victims, while Coinone established procedures with investigative authorities to calculate and refund compensation. From October 2024, Coinone operated a hotline with Kakao Bank to support refunds through the bank's procedures.
