Coinone Ordered to Compensate Client Loss From Hack

The decision of the Seoul District court may be really considered as a landmark
02 October 2019   514

Seoul District Court ordered Coinone bitcoin exchange to partially compensate the client for the amount of about $ 50,000, whose account was hacked by hackers. It is reported by the local edition of IT Chosun.

The affected client has been trading on the exchange since April 2017. As of November 2018, its deposits were estimated at about 58 million won ($ 48.3 thousand). However, on December 23, as a result of an account hack, his assets were almost completely stolen.

The hacker, using the Dutch IP address, gained access to the account, bought bitcoins and withdrew them from the exchange. The victim’s account has less than $ 5 left.

The client through the court demanded that Coinone compensate for losses of 58 million won, stating that the exchange was obliged to block transactions from foreign IP addresses. In addition, the amount of cryptocurrency transferred by a hacker exceeded the daily withdrawal limit set by the financial regulator of South Korea at $ 20 million, the plaintiff said.

The court agreed with part of Coinone's counterargument. He did not find the exchange guilty of account hacking and admitted that the site should not block foreign IP addresses.

At the same time, the court decided that Coinone is required to comply with the withdrawal limit, since the restriction is set not only to prevent money laundering, but also to protect customers from disruptions to the exchange. The court determined Coinone to pay compensation to the plaintiff at 25 million won.

The court decision creates a rather interesting precedent, despite the fact that the exchange was recognized as partially responsible for the incident, and the amount of compensation was much less than the claimant requested.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   316

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.