More than 33,000 crypto investors in South Korea are currently unable to access their assets, which amount to approximately $13 million, due to the closure of several crypto exchanges in the country, local media outlet The Korea Times reported on October 14.
According to the report, 14 virtual asset exchanges in South Korea have halted or temporarily suspended their operations in response to the Virtual Asset User Protection Act. As a result, approximately 17.8 billion won, or approximately $12.8 million, of customer digital assets are currently locked on these platforms.
This information comes from recent data released by Representative Kang Min-Kuk of the ruling People Power Party. According to the report, a total of 33,906 South Korean users are attempting to recover assets from the affected exchanges. Notably, eleven exchanges have closed, while three others have suspended their services.
Before their closure, these exchanges held a total of 17.8 billion won in customer assets, including 1.41 billion won in cash and 16.4 billion won in virtual assets.
Cashierest, which closed in 2023, held the largest share of customer funds: 13 billion won, or about $9.4 million. It is followed by ProBit and Huobi, which own assets worth 2.25 billion won ($1.6 million) and 579 million won ($419,000), respectively.
In addition to the closed exchanges, about 30.7 billion won (equivalent to US$22 million) is tied up in platforms that have temporarily halted operations. This situation could significantly increase the number of customers with frozen funds, although the exact impact remains unclear.
The affected exchanges include Oasis, with 16.2 billion won ($11.7 million), Flata, with 14.35 billion won ($10.3 million), and Btrade, with 80 million won ($57,962).
Representative Kang noted that the continued push for regulatory compliance could further increase these numbers. He reportedly said:
“With the virtual asset market in slump and regulatory compliance costs rising, more exchanges are likely to cease or suspend operations during the FSC’s ongoing renewal review process.”