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Bitmain Sues Anonymous Hacker Over $ 5.5 Million Theft

Chinese mining giant Bitmain is suing an anonymous hacker that allegedly stole $ 5.5 million in cryptocurrency last April from the company's account on the digital exchange Binance.

The hacker's identity is still unknown, in the official court documents, which were filed in accordance with the lawsuit on November 7, 2018, with the U.S. District Court for the Western District of Washington in Seattle. Binance account, then use bitcoin stored in the account to purchase and tokens. These tokens were used to buy and manipulate the price of an altcoin known as MANA coin (MANA).

John Doe then transferred the MANA into a separate Binance account they controlled. The documents explain, "On further information and belief", John Doe took his / her / its market manipulating and theft scam a step further by essentially reversing the same orchestrated trades between Bitmain's wallet and John Doe's wallet. While accessing Bitmain's digital wallet without authority, John Doe placed an order to sell MANA out of Bitmain's digital wallet at a deflated price. John Doe's Binance wallet. "

They continue to say, "Binance's system, and John Doe," he said. As a result, John Doe has been benefited twice from transferring MANA into and out of Bitmain's digital wallet. "

Once these steps were completed, the court filing reports that the hacker transferred to the crypto funds from the theft into a wallet on Bittrex, a competing digital asset exchange. John Doe is then cashed in on the profits and disappeared.

The documents say the hacker willingly and knowingly accessed a protected computer without appropriate permission with the intention of defrauding Bitmain.

"By means of such conduct, John Doe furthered the intended fraud and value of things, specifically bitcoin and other digital assets, causing a loss to Bitmain exceeding $ 5,500,000," the filing states.

Specifically, the documents assert that the defendant's actions are a violation of the Computer Fraud and Abuse Act (CFAA), and that Bitmain is entitled to specific damages under the Act's provisions.

This month, it was the last month of 2018, the total losses of 2017 by roughly 250 percent and that $ 950 million has been stolen this year.

To view the court filing in full, click here.

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