Bitcoin mining giant Bitcoin (BTC) based in China has sued an anonymous hacker for the alleged $ 5.5 million cryptocurrency of the Bitmain account on Binance in April, according to a lawsuit filed in the District Court of United States for the western Washington district in Seattle on November 7th.
As stated in the court document, an unknown hacker, referred to as "John Doe" in the case, managed to take over the Binance account of Bitmain and used stored Bitcoin to manipulate the price of Altcoin Decentraland (MANA) and then steal the profits.
Bitmain states in the court document that the company's losses "exceed" $ 5.5 million in "Bitcoin and other digital assets" and specifies that the defendant was able to steal "about 617 BTC". The document mentions that the unauthorized action took place on April 22, when Bitcoin traded around $ 8,935.
The document also explains that, as part of the "scam", the unknown hacker used two of their accounts on Binance, the second largest encryption exchange now, and on Bittrex, with about 2.3 million MANA already purchased on Bittrex. Reportedly, "John Doe" placed purchase orders from Bitmain's digital portfolio offering to buy MANA "and other digital assets" with Bitmain bitcoins at a price "much higher than the market rate". The defendant would have further artificially inflated the price of MANA using Bitmain's BTC will buy Ethereum (ETH), which was then used to buy MANA.
According to the lawsuit, the hacker also carried out a number of operations orchestrated in the opposite direction between BTC and MANA from Bitmain's wallet and theirs, concluding reportedly completing the theft by transferring BTC from their Bitmain account "ultimately into a digital wallet on the Bittrex cryptocurrency trading platform. "
In mid-October, Cointelegraph reported that losses caused by hackers of cryptographic exchanges in the first nine months of 2018 exceeded the number of the whole of 2017 by 250%, with 927 million dollars stolen.