South Korean Court Mandates CoinOne to Payback User’s $20,800 Lost Crypto

Wilfred Michael 

Wilfred Michael

News reporter

27 September 2019,
16:50
South Korean Court Mandates CoinOne to Payback User’s $20,800 Lost Crypto

According to local reports, a South Korean court ruled earlier this week that cryptocurrency exchange, CoinOne must payback 25 million won ($20,800) to a user who lost his funds on their platform to hackers.

The court made the decision given that the exchange was supposed to have enforced a 20 million won ($16,600) daily threshold on the victim’s account but failed to do so as the hacker made away with ($37,456) without any restriction.

The report noted that the theft occurred in December 2018, when the user login details were stolen, allowing a hacker to access his CoinOne account. The hacker allegedly used a VPN from the Netherlands to conceal their location and withdrew cryptocurrencies believed to be worth 47.7 million won ($40,000) as of late November 2018 likely when the user last accessed the account.

For his part, the victimized user blamed the CoinOne exchange for failing to block the hacker since the account was accessed from a different location other than the one he uses to access the account.

However, the court ruled that the safeguard was not necessarily the duty of the crypto exchange but still blamed them for failing to enforce the withdrawal threshold, a loophole the hacker exploited to withdraw the user's cryptos after converting them to Bitcoin (BTC).

It was based on the fact that CoinOne allowed the unidentified hacker to withdraw above the specified limit that the court ordered them to payback the user's losses to cover the additional losses over the withdrawal limit.

In a similar development in February we reported that Antony Liu and Mengxian Zhang, the men behind MCash token, were found guilty of duping by a New York district court and ordered to pay back $8 Million to their victim Lijun Sun.

 

Subscribe to our Telegram and Reddit channels to stay up to date on the latest STO and crypto regulations news