- Upbit announced that it would compensate investors for Polygon mis-deposits.
- The exchange said it will compensate for Polygon’s incorrect deposits by October 17 only.
South Korean-based cryptocurrency exchange, Upbit announced on October 26, that it would compensate investors for Polygon mis-deposits. Upbit sent an email notifying its users about the preemptive compensation for cryptos Polygon incorrectly deposited by October 17.
This comes after Upbit listed Polygon on October 15, along with Soligon and Nucypher. After that, investors criticized the exchange for posting a pop-up notice five hours later that it only supports Polygon deposits through the Ethereum blockchain. This resulted in some investors losing funds as they deposited their Polygons through Binance Smart Chain and Polygon Mainnet.
In the email, Upbit said,
As a result of consultation with the project team, the project team plans to lend Upbit the amount of misdeposit relief only for the amount of wrong deposits that occurred on the Polygon mainnet chain from the time of deposit support until 24:00 on October 17, 2021.
In short, Upbit crypto exchange asserted that it will preemptively pay the amount received from the polygon team to the affected members.
In addition, the exchange revealed that they are negotiating a detailed payment schedule for loaning out the amount of money to be corrected for mis-deposits. So, “this may take some time, but we will contact you as soon as the payment schedule is confirmed,” says the firm.
It means that incorrect deposits caused by withdrawals from the Polygon mainnet chain after October 17, only will be individually notified after the development of the recovery system is completed. Not to mention that the compensated supply was provided by the foundation. However, there is no detail on whether the customers are compensated fully.
Expanding further, Upbit explains that it will analyze recovery methods in different ways to review recoverability and technology on every unsupported network. However, the exchange affirmed that it would take months to develop the recovery system. This is because the company would require additional human and separate financial resources.
On the other hand, investors didn’t take it well since some polygon mis-deposited investors complained as their compensation proposals were rejected.
However, to address the critics, the exchange pointed out that investors should have tested by depositing a small number of coins first before depositing Polygons on the exchange. As a result, the firm said that this would set an example for future listings where many customers who are blind in choosing networks were still compensated despite their mistakes.
- Cryptocurrency Exchange