South Korean court rejects CP Labs suit over order to return customer assets

A South Korean court has dismissed a lawsuit by CP Labs, formerly Coinplug, challenging an administrative order from South Korea’s Financial Services Commission after the company failed to return customer assets following the shutdown of its digital-asset exchange service. The Seoul Administrative Court’s second administrative division, led by Presiding Judge Kong Hyun-jin, on Oct. 1 rejected CP Labs’ request to cancel the corrective order. CP Labs had operated the exchange and continued to hold and manage user balances after ending operations on Nov. 30, 2020. After the assets were not properly returned, the Financial Services Commission in November last year ordered the company to notify users about the asset return process, return user assets and transfer them to a foundation, submit details on its compliance with the order, and cooperate with an inspection by the Financial Supervisory Service. CP Labs filed the administrative suit in December last year, but the court rejected the claim.