The court ordered the Korean Coinone cryptocurrency exchange to pay partial compensation for losses incurred as a result of a hack into the client's account. The amount of compensation amounted to about $50,000.
Coinone paid compensation to the client
As you know, a client started tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details on the Coinone exchange in April 2017, holding nine cryptocurrencies in his portfolio worth 58 million won ($48,300). However, on December 23, as a result of an account hacking, his assets were almost completely stolen.
Using a foreign IP address, the hacker gained access to the account, bought BTC and removed them from the exchange. And the victim’s account has less than $5 left.
After that, the client through the court demanded that the exchange compensate for the losses and stated that the security system of the exchange was obliged to block transactions from foreign IP addresses.
The court agreed with a portion of Coinone's charges. But he did not convict the exchange of account hacking and admitted that the site should not block other people's IP addresses.
Interesting in the section: Hacker managed to steal $100,000 playing EOSPlay
- This is the first case in Korea when crypto-exchanges are partially responsible for customer funds lost due to computer hackers.
- The U.S. Attorney's Office in the Northern District of California charged Elliot Gunton and Anthony Tyler Nashatka with hacking EtherDelta in December 2017.