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   228

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.

Nasdaq to Launch Index, Based on 100 Crypto Assets

Neural network, considering 200 different factors, helped to create the list of the assets tracked by the CIX100 index
16 October 2019   84

Nasdaq, the world's second largest stock exchange, has added the CIX100 index based on 100 crypto assets, reports CoinTelegraph.

When building a basket of hundreds of leading digital assets, the tool from Cryptoindex.com uses neural network algorithms that take into account more than 200 different factors. Such a comprehensive analysis allows, in particular, to exclude coins with fake volumes.

It is also known that the index draws data on transactions on the nine largest bitcoin exchanges, and also analyzes information from social networks and the media. Only those coins that last in the top 200 for at least three months can become components of the CIX100. The composition of the index will be reviewed monthly.

According to the developers, the index will be useful for both newcomers to the industry and professionals.