SEUM Successfully Represents Binance in Obtaining Injunction Against Suspension of Bank Account by Woori Bank
SEUM successfully represented Binance KR, Ltd (“Binance KR”), the Korean cryptocurrency exchange operated by Binance, the global leading cryptocurrency exchange, against Woori Bank, one of the leading banks in Korea, in obtaining an injunction against the suspension of Binance KR’s bank account by Woori Bank in just 3 days from SEUM’s filing the request for injunction.
Shortly after Binance KR began its operations, it received a notice from Woori Bank that Binance KR’s bank account will be suspended solely on the basis that it had used its account to deal in virtual assets (cryptocurrency and virtual currency).
SEUM quickly filed an injunction, arguing that: (1) Woori Bank’s actions were in breach of its general terms and conditions for deposit transaction; (2) prior to commencing operations, Binance KR had requested to discuss with Woori Bank, which Woori Bank rejected without clear reason; (3) there are numerous similar cases where the court ruled that such suspensions are unreasonable; and (4) the Anti-Money Laundering Guidelines Regarding Virtual Currency submitted by Woori Bank as a basis for the suspension is not legally binding.
The court accepted all arguments made by SEUM, holding that Woori Bank’s notice and suspension of the account were unreasonable, and granted an injunction requiring Woori Bank to cease and desist from its suspension of the account.
This victory was meaningful as Binance KR (and other virtual asset companies) would have otherwise suffered great losses due to similar actions by financial institutions.
The ruling was a result of the cooperation between the blockchain/virtual assets team and litigation team of SEUM and was comprised of partners Hoseok Jung, Byungil Lee, and Hyunsub Lee, and associate Jingi Kim.