A South Korean court acquitted Bithumb exchange in a user’s hacking case, Coindesk reports. Ahn Park, the hacked Bithumb user, lost approximately $355,000 and sued Bithumb’s parent firm, BTCKorea.com, in a civil case in an attempt to get his money back.
Park lost 400 million Korean won ($355,000) due to a hacking incident which saw his Bithumb funds exchanged to ethereum and then transferred out of his wallet. Park claimed since Bithumb’s services are similar to the financial sector’s, the exchange should provide a similarly “high degree of security measures” as that of other financial institutions. Moreover, Park also pointed to Bithumb’s April 2017 personal information breach as a possible leak of his sensitive personal data.
Bithumb argued that “[a] ccording to the Electronic Financial Transactions Act, Bithumb is not responsible for compensation because it is not a financial company, an electronic financier, or an electronic financial assistant. … Since we have strengthened our security policy since the leak of personal information, we have fulfilled our obligation to be a diligent manager.”
The judged saw Bithumb’s point of view, backing the claim the Electronic Financial Transactions Act “does not apply to the exchange.” Due to cryptocurrency’s speculative character, the judge said, “it cannot be regarded as an electronic means of payment.” Moreover, the judge stated there is no way of determining when Park’s data was leaked as a phishing website or a mobile phone hack could be behind it.
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Bithumb, a Korean crypto exchange, wins in hacked client lawsuit written by Carol Gaszcz @ https://www.theblockcrypto.com/tiny/bithumb-exchange-wins-in-hacked-client-lawsuit/ December 28, 2018 Carol Gaszcz