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Judge rules in favor of Bithumb, crypto investor’s claims dismissed

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Legal authorities in South Korea have ruled in favor of the crypto exchange, Bithumb, ruling that it need not compensate a crypto investor who filed a lawsuit against the exchange who claimed to have lost 470 million won (approximately $ 402,000), during the 2017 Bithumb hack, according to local news source, Yonhap

The legal community, who did not disclose the name of the investor, said that since the user was unable to prove that his data was compromised during the hack, Bithumb would not be held liable for the investor’s lost funds. A basic translation of the ruling stated: 

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There is no evidence to admit that Mr. A’s [the crypto investor’s] personal information was included in Bithumb’s data that was allegedly stolen as a result of the attack [the 2017 hack]. 

The user, though, said in the complaint that he was holding Korean won funds on the Bithumb exchange and that the hackers behind the data breach accessed his personal information, and allegedly used his funds to buy ethereum (ETH). He further claimed that the hackers also converted the ETH into fiat via four separate transactions, according to the report. 

AMBCrypto reported earlier on 4 September, three other crypto investors had also claimed that the hackers behind Bithumb’s data breach stole their funds in the 2017 incident. These users who filed a lawsuit against Bithumb expected the exchange to compensate them for their lost funds. The court, however, ruled in favor of Bithumb but held the exchange partially responsible in the September 4 hearing. 

So far, the legal battles with Bithumb make this is the first case in Korea that a virtual currency exchange has been sanctioned.

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Linda Hopkins

Linda is one of the oldest contributors to Sunriseread. She has a unique perspective with regards to business and technology. She aims to empower the readers with the delivery of well-written news pieces, and most importantly, she always tries to bring the news quicker to the readers.

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