A court ruling states that Coinone should directly compensate its client for funds that were hacked and stolen from their wallet. This may affect other lawsuits, as this is the first decision to recognize the responsibility of digital trading platform for the sufferer hacker losses.
Yesterday, September 27, the Seoul Southern District Court ordered the Сoinone to recover damages of 25 million won or over $ 20,000. At the same time, digital currencies equivalent to 57.9 million won were stolen from the client’s account.
According to the suitor, a hacker connected to an IP-address on a Dutch VPN server and sold all his capital. The hacker changed funds for Bitcoin and sent them to another BTC address.
Following the policy of Coinone, the highest withdrawal amount per day is 20 mln won. However, the system did not limit it, so user’s funds left the trading platform successfully.
Now the suitor requires the exchange operator to recover his damages. Therefore, he filed a lawsuit to court, which states the crypto exchange did not establish minimum protective measures. The user’s IP access ban using other external IP-addresses are among them. The Coinone’s system also did not block with exaggeration of the daily withdrawal limit. At the same time, the hacker may own the private data of a fallen sparrow that exchanges holds.
The representatives of Coinone consider the suitor’s claims to be unable. The court notes that the exchange system should not ban foreign IP-addresses. However, there is no confirmation that the transaction was performed by a third party with information about the suitor’s account, which is owned or operated by the trading platform.
The court found that the Сoinone system should not have approved an operation beyond the established limit. However, even if the exchange limited the withdrawal limit, the hacker could withdraw cryptocurrency in the amount of up to 20 million.
The Digital Trading Platform To Compensate For Hack Losses For The First Time
Note, the user has sued against cryptocurrency trading platform in South Korea for the first time. There should be a juridical liability, and cryptocurrency trading should have more serious protection than regular transactions.
With the reliability of security systems, the number of incidents with hacking cryptocurrency exchanges will decline significantly. Then users will be able to trust them with their funds and be more friendly to the crypto space as a whole. After all, no one wants to part with their money, especially in this way.
The Coinone’s judgment will serve as an example to other platforms so that they abide by the basic principles. In turn, customers of the platforms will now know that justice is on their side and they can count on succour. After all, everyone wants a future in which operations with cryptocurrency are the norm not only for individual users but also on a global level as a whole.