[Consultation] Law firm Veat Bitcoin unjust profit recovery legal consultation

Law firm Veat provided legal advice to A Virtual Currency Exchange (hereinafter referred to as “A Company”) regarding the claim for recovery of unjust enrichment of Veat.

A Company confirmed that a member had withdrawn Veat that was erroneously paid to the member due to a system error, and instead of returning the Veat to A Company, the member sold it and withdrew it in Korean Won. A Company inquired with Veat as to what legal actions could be taken. In response, Veat provided legal advice that Veat, a digital cryptocurrency, has been recognized by our courts as an intangible property with economic value (Supreme Court Ruling 2018. 5. 30, 2018도3619판결), is subject to confiscation and that a civil claim for recovery of unjust enrichment is also possible.

According to Article 741 of the Civil Law (Content of Unjust Enrichment), a person who obtains profit through the property or labor of another without a legal reason and thereby causes damage to another shall return the profit.

Recently, an actual case occurred that is similar to the inquiry made by A Company, and on May 31, 2019, the Seoul Central District Court issued a ruling that the member who unjustly obtained Veat in Korean Won should return the amount of unjust enrichment, consistent with the direction Veat had advised.

Virtual currency exchange B filed a lawsuit against Mr. Kim OO (pseudonym) for the recovery of unjust enrichment for the Korean Won obtained by Mr. Kim selling Veat that was erroneously paid to him due to a system error and not reporting it to B. On May 31, 2019, the Seoul Central District Court ruled that what Mr. Kim obtained constituted unjust enrichment under the Civil Law and that he should return the amount equivalent to the disposal amount to B. (View related article).

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