Not lucky: Korean court acquitted Bithumb the claim of the investor who lost 355 thousand dollars

According to The Korea Economic Daily, Korean crypto currency exchange Bithumb won a court case in which the investors accused the company of losing money because of alleged hacking. According to the report, 30-year-old civil servant An Park spoke about the account hacking November 30, 2017 and the loss of 355 thousand dollars. According to him, within a few hours after closing a very lucrative deal someone got access to his account and traded the resulting Fiat on the Ethereum (ETH). On the same day from the account at the exchange and withdrawn almost all the money in four separate transactions. After that, An Park there are only 11 cents.

Cointelegraph writes, the injured investor has filed a lawsuit against Bithumb for the inadequate security that is included in the list of responsibilities of any “financial company”. The plaintiff claimed that cyber criminals could get personal information as a result of leakage in the security system in October 2017, when hackers gained access to sensitive personal and financial data of more than 30 thousand users.

According to Yonhap news Agency, the applicant had sent more than 10 SMS messages with confirmation request for withdrawal, but he did not receive them. Thus, it becomes extremely difficult to eliminate the possibility of hacking.

Source: Bitcoinist

Park also claimed that the activities Bithumb as crypto currency exchange of similar services offered in the financial sector, and therefore the exchange must comply with the safety requirements that apply to brokerage firms. However, the judge ruled against this argument and stated the following.

Virtual currency cannot be used to purchase goods. Moreover, it is difficult to guarantee their exchange for cash, because their price is very volatile. Crypto-currencies are mostly used for speculation, so it is unwise to apply the Law on electronic financial transactions to the defendant, which operates with a virtual currency without having to obtain a permit [of the South Korean regulator] the financial services Commission.

It seems that the plaintiff will have to seek additional work. More data look at cryptodata.

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