Bithumb Wins $355,000 Hack Lawsuit

One of the clients of the South Korean exchange Bithumb claimed that hackers stole $350,000 from his account because of the negligence of the trading platform. He filed a lawsuit in court, but Themis took the side of Bithumb.
Park, one of the customers of the largest South Korean crypto exchange Bithumb, claims that last November, hackers broke into his account and robbed it. Allegedly, then he deposited on Bithumb 478 million Korean won (about $350,000). But just a few hours after that, the malefactors hacked his account, exchanged all the money for Ethereum, and withdrew it from the exchange. 

As a result, when Park went back to his account, only a few cents remained on it. Park accused Bithumb of losing his money and sued the exchange. In the lawsuit, Park stated Bithumb provides financial services, which means that it must adhere to all security measures for financial institutions, such as banks. And since the exchange did not do this, he lost money.

Moreover, in April 2017, hackers managed to steal the personal data of thousands of users from Bithumb. According to Park, then malefactors could get access to his account.

Bithumb disagreed with Park's arguments. According to the trading platform, it is not a financial institution. And after the leakage of customers' personal data, the exchange strengthened security measures. Moreover, Park failed to prove the hackers obtained its data as a result of the spring attack on Bithumb, and not because of the hacking of his mobile phone, for example. The exchange also sent Park 10 SMS with the notification of the exchange and withdrawal of money from his account. But he did not respond to them.

The court agreed with Bithumb’s position and dismissed the Park claim.

1 year ago

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