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Bitmain is a company renowned in the cryptocurrency sector. Their bread and main butter revolves around the creation of specialized mining equipment. This company also filed a lawsuit against unknown persons. This deposit arrives after the company's Binance account has been hacked and funds have been stolen.
Bitmain Search for justice
Cryptocurrency exchange hacks have become all too common over the years. In most cases, individual users are interested. Sometimes, even companies associated with projects or companies can be abused. For Bitmain, his Binance account was compromised by an unknown individual. Due to this intrusion, the mine producer lost 617 bitcoins, worth about 5.5 million dollars at the time of the theft.
It is believed that the stolen funds have not been converted into US dollars. Instead, the case claims, these funds were transferred to the Bittrex exchange. The hacker used this last platform to heavily inflate the price of a relatively unpopular altcoin called MANA. It is unclear whether this is an attempt to launder money or if it serves a more nefarious purpose. The transparent nature of Bitcoin simplifies the monitoring of the origins and destinations of specific transactions.
For an unknown reason, the "hacker" account of Binance has not completely emptied the Bitmain account. Instead, he, she, or they left over 200 Bitcoins in the account that belongs to Bitmain. Because it was done this way, it is not clear until today. Bitmain claims that this confirms that the offender clearly intended a fraud and was willing to cause damage to the company.
Finding the real culprit is difficult
The cause also stands out for another reason. Bitmain officially presented it against "John Doe". This does not confirm neither the company nor its legal representatives know the true identity of the perpetrator. However, filing the lawsuit in Washington is not accidental. Bittrex, one of the exchanges involved in this fraud scheme, is based in Seattle, Washington.
Given the unknown identity of the guilty party, the outcome of this cause remains in question. Bitmain is intent on discovering the identity of the person responsible for these financial losses. Whether or not to take legal action will help them in this sense is difficult to predict. It is unpleasant to see a leading company fall victim to the exchange of problems with the account.
This cause comes after another storage related to cryptography. Several cryptocurrency investors have filed charges against two major US telecommunications companies compared to SIM exchanges. Considering the way in which exchange hackers are very common, it is not unlikely that further legal proceedings will follow in the months and years to come. How this will affect long-term trading operators, is anyone's guess.
What will be the result of this case? Will Bitmain be able to recover funds stolen by the still unknown hacker? Let us know what you think in the comments below.
Images courtesy of Shutterstock, QZ.com
