According to the Yonhap news agency report, the investor, known as Mr. A, had taken Bithumb to court in connection with the losses, which he alleges were the result of a significant data breach at the exchange back in 2017. However, a judge in the high court refused the case and dismissed liability after Mr. A failed to sufficiently prove that the exchange’s negligence had caused his losses. Following the ruling, the crypto exchange will not be required to compensate Mr. A. Crypto news aggregator platforms like cryptopanic can help you keep up with the crypto industry.
The losses were from the data breach prior to 2017.
According to the plaintiff, the losses came from Korean won stored on the exchange prior to a data breach in 2017. Hackers had allegedly gained unlawful access to the won and bought Ethereum tokens with it through the Bithumb exchange, before converting these back into fiat at four separate intervals. The case against the South Korean exchange was only the latest to have been raised by investors concerned about losses emerging after the 2017 data breach. This month, two of these claims were dismissed for $126,000 and $38,000, respectively, while a third was awarded just $5,000 in a partial settlement.
South Korean court had ordered to seize investors’ shares of Bithumb.
South Korea’s leading cryptocurrency exchange Bithumb came under inspection of Seoul Police due to certain accusations earlier this year. The chairman of Bithumb was found defrauding Bithumb’s customers by fooling them into buying fake tokens. Bithumb was accused of dumping its customers by selling an unlisted token. Bithumb has been a hot topic among the crypto community as it was the second cryptocurrency exchange to come under police scrutiny. The Seoul Central District Court passed an order to seize Bithumb investors’ share last month.