Exchange Bithumb won a court user

Exchange Bithumb won a court user

Korean cryptocurrency exchange Bithumb won a lawsuit from his former user, which is required to compensate for more than $300 thousand, unknown stolen from his account. According to the court, the crypto currency exchange is not a financial institution, therefore, must not indemnify, besides, the hacking could occur due to the negligence of the user.

Cryptocurrency exchange from South Korea Bithumb won a lawsuit against its former user, who demanded compensation for the hacking of her profile, in which money was stolen, valued at approximately $355 thousand. This was reported by the portal CoinDesk Korea.

According to court documents, the user Bithumb with the surname Pak at the end of November transferred to your account a total of 478 million won, and within hours, an unidentified intruder entered his account, and he exchanged Fiat currency for air.

On the same day, as claimed by Pak, Bithumb 4 times to have authorized the withdrawal from his account of the ether. In the end, his score remained the cryptocurrency equivalent of 11 cents and less than a dollar to Fiat money.

Through the court of Pak has requested the exchange to offset any lost funds. According to his statement of claim, Bithumb was to provide “a high level of security required of financial institutions.” He also suggested that criminals could take advantage of a weak point in the security system of the exchange, resulting from a large-scale hacking trading platform in April 2017.

In court, the defense said:

“According to the law on electronic financial transactions, Bithumb not responsible for compensation because it is not a financial company and electronic financial officer or financial assistant… as we have strengthened security policy since the leak of personal data that have fulfilled their commitment to be a reliable administrator.”

In the end, the judge sided Bithumb, agreeing that the act does not apply to the exchange and adding that cryptocurrencies are used “primarily as a means of speculation, and therefore cannot be considered as electronic means of payment”. The judge also added that to determine if the break-in 2017, it is impossible — it is possible that Pak has compromised the access credentials of the account after entering a phishing site or as a result of hacking his phone.

Finally, the court pointed to the fact that the exchange fulfilled the duties of a customer because Puck sent 10 SMS messages with a warning about the withdrawals from his account before approving the operation.

Earlier research organisation CER issued a report in which he accused the Bithumb crypto currency exchange in large-scale fraud in trading volume. According to analysts, the volume of trading on the exchange grew too fast during the fall. In addition, the trade volume is not correlated with price fluctuations on the stock exchange.

In early November it became known that Bithumb planning soon to open in the U.S. exchange for trading security tokens.

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