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A South Korean court ruled in favor of the Bithumb exchange after a user has been hacked for about $ 355,000 and has moved to court for the loss-making company.
According to a CoinDesk report, Tuesday, court documents reveal that a Bithumb user with the surname Park stated that he placed 478 million won Korean won on his account with Bithumb on November 30, 2017 and within hours, someone speculated to be a hacker , had made access to his account and exchanged the money for ethereum.
On the same day, Park asserted, Bithumb allowed the ethereum to be extracted four times from its portfolio. As a result, the only funds left when he returned to his account were encrypted worth 121 won (11 US cents) and less than a dollar in cash.
In an attempt to recover its funds, Park took over Bithumb's parent company, BTCKorea.com, in a civil court in the Korean capital Seoul, saying: "Considering that Bithumb offers similar services to the financial sector, it requires a high degree of security required by financial institutions. "
He also indicated a serious violation of the personal information breach that occurred in Bithumb in April 2017 as a possible leak of information about his accounts and claimed that the exchange was not at the height of his fiduciary obligations expected to act in the best customer interest. In the violation of 2017, thousands of Bithumb customers have stolen their personal data after the malicious code has been placed on the platform. As a result, Bitsy Korea.com received 58 million won sanctions from the authorities.
In his arguments in court, the exchange said: "According to the Electronic Financial Transactions Act, Bithumb is not responsible for compensation as it is not a financial company, an electronic financier or an electronic financial assistant. … From the moment that we have strengthened our security policy after the leak of personal information, we have fulfilled our obligation to be a diligent manager. "
The judge who supervised the case eventually supported Bithumb, accepting that the Electronic Financial Transactions Act does not apply to the exchange and adding that the cryptocurrency is "used primarily as a speculative medium, so it can not be considered an electronic means of payment".
In addition, the judge stated that it is not possible to determine that Park lost his personal data in the April 2017 data breach and suggested that he may have lost his Bithumb login information via a phishing website or that his mobile phone it may have been violated.
Finally, as regards the claim that the exchange was not at the height of his fiduciary duty, the court stated that this was not the case since Bithumb had actually sent 10 SMS messages to Park regarding withdrawals. hackers to warn them of fund movements, which must be approved manually by the exchange.
Won Korean and image of the gavel through Shutterstock
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