Bithumb to Win Court Case of User’s $355K Hack

The court also noted that cryptocurrencies are "mainly used as speculative means, so it cannot be regarded as an electronic means of payment."
27 December 2018   615

The South Korean court ruled in favor of the Bithumb exchange in a case of theft of a cryptocurrency worth $ 355,000 from its client. The court concluded that the platform has taken all necessary precautions, reports CoinDesk.

In November, an exchange customer placed 478 million Korean won on his account. After that, the hacker allegedly gained access to his account and exchanged fiat currency for Ethereum. Bithumb processed these transactions and as a result, the client’s account left 11 cents in cryptocurrency and one dollar in Fiat.

The affected client of the exchange suggested that the consequences of a hacker attack on the platform in 2017 could result in loss of fund.

Considering that Bithumb offers similar services to the financial sector, it requires a high degree of security measures required by financial institutions.

User's Lawsuit

Representatives of the exchange, in turn, said that Bithumb is not a financial institution and is not obliged to compensate for the damage.

According to the Electronic Financial Transactions Act, Bithumb is not responsible for compensation because it is not a financial company, an electronic financier, or an electronic financial assistant. … Since we have strengthened our security policy since the leak of personal information, we have fulfilled our obligation to be a diligent manager.

Bithumb's Reply

The decision of the court says that Bithumb sent 10 SMS-notifications about the withdrawal of funds from client's account, thereby warning about the danger. The judge ruled out the connection of last year’s Bithumb hacking with the leakage of client data, adding that the victim himself could transfer personal information to the attackers.

The court also noted that cryptocurrencies are "mainly used as speculative means, so it cannot be regarded as an electronic means of payment."

In December, Bithumb commented on new allegations of overstated trading volumes.

Hacked Zaif Exchange to Resume Operations

It was hacked in September last year,  about $60 million in cryptocurrency was stolen from its platform
22 April 2019   83

Japanese cryptocurrency exchange Zaif announced that it will complete the transition from the Tech Bureau to the Fisco Digital Asset Group (FDAG) on April 22 and resume normal operation the next day, Cointelegraph reportes.

In September last year, the exchange underwent a hacker attack when about $ 60 million in cryptocurrency was stolen from its platform, including Bitcoins, Bitcoin Cash and Monacoin. As part of the compensation plan to users, FDAG exchange acquired a large stake in Zaif business and transferred to the Tech Bureau over $ 44.6 million.

According to an earlier announcement of the exchange, 40% of the lost funds will be compensated to users by Fiat, and the remaining 60% - to the cryptocurrency, which will be available for withdrawal on April 23.