Home / Ripple / Korean court acquires Crypto Exchange Bithumb after the investor has filed a lawsuit in the amount of $ 355K Hack

Korean court acquires Crypto Exchange Bithumb after the investor has filed a lawsuit in the amount of $ 355K Hack

South Korean krypton exchange Bithumb won a lawsuit in which an investor had sued the company for his loss of approximately $ 355,000 in an alleged hack. The local financial newspaper The Korea Economic Daily reported on December 24th.

According to the report, the investor – 30-year-old civil registry officer Ahn Park – claimed to have been the victim of an attack on his Bithumb account on November 30, 2017, which resulted in a loss of 400 million Korean won, or about $ 355,000.

A few hours after his filing, Mr. Park claimed that an unidentified hacker had compromised his account and exchanged fiat for Ethereum (ETH). On the same day, in four separate transactions, the cryptocurrency would have been transferred from its portfolio, which would have left the investor with an ETH of just 121 won (about 11 cents).

At the heart of the Park case it was reported that Bithumb had not offered security guarantees appropriate to his responsibilities as a supposed "financial services" company. He argued that Bithumb's activities such as cryptocurrencies are similar in nature to services offered in the financial sector and should therefore be subject to the security requirements that apply to e-commerce transaction brokers.

The judge, however, rejected this argument by stating that:

"In general, virtual currencies can not be used to buy goods and it is difficult to guarantee their exchange of money because their value is very volatile. [Cryptocurrencies] they are mainly used for speculative means, [and it] it is not reasonable to apply [Korea’s] Electronic Financial Transactions Act to a defendant who distributes virtual currency transactions without the permission of [South Korean regulator] the Commission for Financial Services. "

As previously reported, Bithumb suffered a high profile attack in June, where an estimated $ 30 million of eleven different cryptocurrencies have been stolen; the exchange soon dammed the damage with the assistance of the industry's counterparts, reducing the figure to $ 17 million.

In October, Changelly, the Hong Kong-based encryption exchange service, revealed that it helped Bithumb recover 1,063,500 Ripple (XRP) assets stolen in June, valued at approximately $ 585,000 at the time of the transaction. ; hack.

Earlier this month, Bithumb was pushed to deny charges of artificially inflating trade volumes, after the cryptographic analysis service and the CER analysis service had accused the platform of using false cleaning at the 94% of the commercial volume at the end of the 2018 summer.

At the time of printing, Bithumb is not present in the CoinMarketCap (CMC) rankings for cryptographic exchanges based on adjusted volumes, but ranks at the top of the separate CMC rankings based on self-reported statistics, supporting $ 1,617,305.865 in volume traded 24 hours before the printing time.

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