Crypto Giant Bitmain Takes Legal Action Against Unidentified Intruder For Stealing $5.5 Million
One of the leading corporations in the crypto business in China has filed a case against an anonymous hacker for theft of large amounts of digital currency from their exchange.
The lawsuit was filed in a District court in Washington on 7th November. This stolen money belonged to Bitmain.
Unidentified Hacker Charged
The court’s records indicated that this hacker’s name was being referred to as John Doe, the traditional pseudonym for the unidentified. He succeeded in hacking into Binance accounts before using it to store BTC. As a result, he manipulated an altcoin’s price before stealing the money.
Bitmain said the amount stolen surpasses $ 5.5 million in BTC and other crypto. The approximated sum of BTC stolen by the hacker was 617. This record further indicates that the illegal activity happened on April 22nd when the cryptocurrency was trading at $8,935.
It therefore, shows that investors lost a large sum to the fraudster. This may cause investors to lose confidence in digital money transactions. Therefore, they will invest their resources into other instruments that are secure in future.
Moreover, the manuscript additionally explains how this hacker stole from various platforms such as Bittrex. Additionally, John Doe supposedly placed buy orders from Bitmain’s computerized wallet with the intention of purchasing crypto assets.
However, Bitmain’s bitcoin quoted a higher value than the usual market price. John Doe also intentionally exaggerated MANA’s value hence, misleading the public. All these actions were against trade regulations in stock markets.
The case further illustrates that this hacker conducted several orchestrated transactions opposite the trend between MANA and Bitcoin. Another crime includes transmitting bitcoin from Bitmain version to an automated wallet on the Bittrex exchange platform. This indicates it took some time before the management of the affected corporations realized the fraud.
Money Lost To Hackers Is Increasing YoY
Last month, Cointelegraph disclosed that the money lost to hackers up to September this year surpassed the amounts stolen in 2017 by two hundred and fifty percent. The amount lost this year thus far totals around $927 million.
If this trend continues, investors and trading platforms may end up losing huge amounts to fraudsters. Therefore, the market regulators and other stakeholders in the industry should partner and find ways of eliminating this menace in future. Otherwise, these happenings may scare away investors who otherwise would invest in crypto.