• Upbit stated that investors would be compensated for Polygon’s mis-deposits.
• The exchange said it will compensate for Polygon’s incorrect deposits by October 17 only.

Upbit, South Korean-based cryptocurrency exchange said on October 26 that it would pay investors for Polygon misdeposits. Upbit sent out an email to inform its customers about preemptive compensation for Polygon cryptos that were incorrectly deposed by October 17.

Upbit had listed Polygon along with Soligon, Nucypher and Soligon on October 15. Investors criticized Upbit for announcing five hours later, via pop-up notification that the exchange does not support Polygon deposits using the blockchain. Many investors were unable to deposit their Polygons using the Binance Smart Chain, Polygon Mainnet and this caused them to lose funds.

Upbit wrote in an email:

After consulting with the project teams, Upbit will lend Upbit the misdeposit relief amount only to cover wrong deposits made on the Polygon mainnet chains between deposit support and 24:00 on October 17, 2020.

The Upbit cryptocurrency exchange stated that it would preemptively pay any amount received from polygon team members.

Additionally, they revealed to the Exchange that they are currently negotiating a detailed repayment schedule for lending out the amount needed to correct mis-deposits. So, “this may take some time, but we will contact you as soon as the payment schedule is confirmed,” says the firm.

This means that any incorrect deposits made from the Polygon mainnet network chain after October 17 will only be individually notified once the recovery system has been developed. The foundation also provided the compensation supply. The foundation does not provide any details about whether customers receive full compensation.

Upbit expands further by announcing that it will review recovery methods in various ways and evaluate recoverability on all unsupported networks. But, Upbit stated that the system will take many months to create. Because the company needs additional human and financial resources, this is why it took months to develop its recovery system.

On the other hand, investors didn’t take it well since some polygon mis-deposited investors complained as their compensation proposals were rejected.

The exchange addressed the criticisms by pointing out that investors could have tried depositing small amounts of coins prior to depositing Polygons. According to the exchange, this will set an example in future listing where blind customers can still be compensated for their errors when choosing networks.

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