In a recent case filed to the U.S. District Court, Western District of Washington atSeattle, Bitmain alleges that the anonymous person stole around 617 Bitcoin [BTC] fromanaccount, managed at crypto exchange Binance, and is seeking a jury trial for damages.
As per the filing, the “as-yet-to-beknown‘John Doe’”stolethe bitcoin holdings on 22nd April, this year from its account. Withonebitcoin worth at around $8,935.32 USD at the time,the corporateclaimedthatitowed $5.5 Mln in damages.
Bitmain claims that thethiefused the bitcoin in its Binancewallet to purchaseMANA – a cryptocurrency used asa part ofthe Decentraland project – “at avaluethat waswayon top ofthe going market rate.”
Theattackeradditionallyallegedly createda buying order for etheremployingBitmain’s BTCdigital wallet, beforecreatinganotherorderfor MANAusingBitmain’s ETH.
Atthe sametime, theoffendercreated a sell order with their existing MANAdigital wallet,permittingthem to trade Bitmain’s BTCfor theirMANA “at a correspondingly inflatedvalue,” adding:
“Upondataand belief, Binance’sautomated controlsystem matched the deflated MANA sell order with the deflated MANAorderandprocessedthe trade and John Doe obtainedconsiderablegains—at the expense of Bitmain. As a result, John Doe benefitteddoublyfrom transferring MANA into and out of Bitmain’s digitalwallet.”
Thelawsuitfiling inSeattle, Washington,needs todo withthe very factthat the allegedattackeris chargedto have utilized an account theymanagedwith crypto exchange Bittrex. Thelegal proceedingalleges that the MANA theattackerutilized inthedealingwas originallykeepin aBittrex digital wallet, and Bittrexreliesout of Washington.
However, “once when John Doe had completed the theft of Bitcoin [BTC] from Bitmain, he/she transferred that Bitcoins [BTC] out oftheJohn Doe’s Binance digital wallet and ultimately into a digitalwalleton the Bittrex cryptocurrencytradingplatform.”
Thelegal proceedingisthusclaiming that the Washington court has jurisdiction over the matterbased onthe computer systemFraud and Abuse Act, the Washingtonlaw-breakingAct andalternativecomputerfraud laws.
The courtmay additionallyhave jurisdictionreckoning onthe thief’s identity, the filingadded.