In line with a recent news ‘report‘ by Korea’s ‘Economic Daily’, South Korean cryptocurrency exchange named ‘Bithumb’ has recently won a lawsuit case in which an investor had sued the firm for his loss of around $355,000 USD in an alleged hack.
As per the report, the investor — thirty year old civil employee Ahn Park — alleged he had been the victim of a hack of his Bithumb account on Nov. 30, 2017, that resulted in an exceedingly loss of 400 Mln Korean won, or around $355,000 USD.
Within hours of making his won deposit, Mr. Park alleged an unidentified hacker had compromised his account and exchanged the fiat for Ethereum [ETH] and on the same say, in four separate transactions, the cryptocurrency was then speculated to have been transferred out of his wallet, reportedly leaving the investor with the Ethereum [ETH] price just around 11 cents.
At the center of Park’s case was reportedly the claim that Bithumb had lacked to provide security safeguards that are equal to its responsibilities as a reputed “financial services” company. The applicant ‘alleged‘ that cybercriminals might have acquired his personal data following this security breach, whereby hackers gained access to sensitive personal and financial information of over 30,000 Bithumb users.
Yonhap press agency reports that over ten SMS messages were sent to the applicant to tell him of the withdrawal movements, however he didn’t received them. per se “It was troublesome to rule out the chance of being hacked.”
Park additionally argued that Bithumb’s activities as a crypto exchange are similar in way of the services offered within the monetary sector, and should therefore fall subject to the security needs that apply to electronic commerce transaction brokers. However, the judge dominated against this argument, stating that:
“In general, virtual currencies can’t be used to purchase goods and it’s troublesome to ensure their exchange for cash as their price is extremely volatile. Cryptocurrencies are mainly employed for speculative means, and it isn’t reasonable to apply [Korea’s] Electronic Monetary Transactions Act to a litigator who brokers virtual currency transactions without the permission of [South Korean regulator] the FSC [Financial Services Commission].”
As antecedently ‘reported‘, Bithumb suffered a high-profile hack in June this year during which around $30 Mln worth of 11 several cryptocurrencies were estimated to have been stolen; the exchange presently stemmed the harm with the help of industry counterparts, reducing the figure to $17 Mln.
Even earlier in Oct., Hong Kong-based crypto exchange service Changelly ‘disclosed‘ it had helped Bithumb to recover 1,063,500 Ripple [XRP] of the assets stolen in the hack, reportedly worth around $585,000 USD at the time of the hack.