The Court Took Bithumb’s Side In The Case $355K Hack
A South Korean court ruled in favor of Bithumb after a user was hacked for around $355,000. The court concluded that the platform has taken all necessary precautions, writes CoinDesk.
In November, the exchange’s client placed 478 million Korean won in his account. After that, a hacker gained access to his account and exchanged the fiat currency for ether. Bithumb processed those transactions and as a result, the only funds left were cryptos worth 11 U.S. cents and less than a dollar in cash.
The client suggested that the consequences of a hacker attack on the platform in 2017 could be a reason for the loss.
The representatives of the exchange, in turn, said that Bithumb was not a financial organization and was not obliged to compensate for the damage.
The court decision says that Bithumb sent the client 10 SMS-notifications about the withdrawal of funds from his account, thereby warning about the danger. The judge ruled out the connection of last year’s hacking with the incident, adding that the victim himself could transfer personal information to the hackers.
The court also noted that cryptocurrencies are mainly used for speculative purposes. Thereby they cannot be considered as an electronic means of payment.