South Korean court dismisses CP Labs lawsuit over customer asset return

A South Korean court has dismissed a lawsuit by CP Labs, formerly Coinplug, against an administrative order from the Financial Services Commission. The order was issued after CP Labs 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, rejected CP Labs' request to cancel the corrective order on Oct. 1. CP Labs operated the exchange and continued to hold user balances after ceasing operations on Nov. 30, 2020. In November 2022, the Financial Services Commission ordered the company to notify users about the asset return process, return user assets, transfer them to a foundation, submit compliance details, and cooperate with an inspection by the Financial Supervisory Service. CP Labs filed the administrative suit in December 2022, but the court rejected the claim.

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