Bithumb, the major South Korean crypto exchange has successfully won a lawsuit against an investor who sued the company for losing about $355,000 after an alleged hack according to the latest digital currency news.
According to the reports from the local financial newspaper The Korea Economic Daily, the 30-year-old investor and civil servant Ahn Park was allegedly a victim of a hack attack when his Bithumb account was targeted and resulted in a nearly $400 million loss.
After making his deposit, Mr. Park believes that a hacker had compromised his account and exchange fiat currencies for Ethereum and he was eventually left with 11 cents.
Mr. Park claimed that Bithumb failed to offer the needed security and failed to prove they were adequate to fulfill their responsibilities and he argued that Bithumb’s activities are similar as the services offered in the financial sector and should thus be a subject to the security requirements under the electronic commerce transaction brokers.
The judge pointed noted:
“In general, virtual currencies cannot be used to buy goods and it is difficult to guarantee their exchange for cash because their value is very volatile. [Cryptocurrencies] are mainly used for speculative means, [and it] is not reasonable to apply [Korea’s] Electronic Financial Transactions Act to a defendant who brokers virtual currency transactions without the permission of [South Korean regulator] the Financial Services Commission.”
The South Korean exchange has suffered a hack attack back in June where about $30 million worth of different cryptocurrencies were stolen.
Bithumb also was the center of attention after denying allegations of artificially inflating the trade volumes since an analytics service CER had accused the exchange of using fake wash-trading.
Ex-CEO Of Crypto Startup AriseBank Pleaded Guilty Of Defrauding Investors For $4.2 Million
“We will not tolerate flagrant deception of investors – virtual or otherwise.”This kind of a plea deal Rice agreed to with Cox is one of the first of its kinds in the US Federal Court that includes crypto companies. Rice pleaded guilty on security fraud charges after he admitted that he lied potential investors into investing hundreds of dollars. Rice was found guilty of scamming investors into buying his AriseCoin cryptocurrency which claimed to bring ‘’no-risk returns.’’ Investors placed their money right into Rice’s scam net and invested more than $4,250,000 in BTC, ETH, and LTC, into the ICO that was supposed to provide them with the AriseCoin. He also claimed that he raised $600 million in an ICO which later turned out to be false. The US Attorney’s Office stated:
“Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, transportation, a family law attorney, and even a guardian ad litem – facts he failed to disclose to investors.’’AriseBank was named as the best-decentralized bank by Rice and he claimed that the crypto bank will provide the customers ‘’FDIC-insured accounts and transactions’’ which the United States Securities and Exchange Commission turned out to be false. He also claimed that his bank supports Visa card payments and that the platform supports hundreds of virtual currencies. AriseBank was not authorized for providing banking services in the state of Texas. Rice is now obliged to repay the investors who lost their money and he is also facing twenty years in prison if he gets sentenced in July. Initially, he was facing up to 120 years in federal prison.
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Boston Legal System Damaged After BTC Ransomware Attack
“CPCS’s computer systems have been attacked and are not working properly. We are still representing clients. In addition, there is no evidence that confidential information from clients has been released as a result of these attacks.”Initially, the attack happened on February 27. The organization believed that paying the ransom means a waste of money so they decided to restore the systems manually. Two weeks after, the entire justice system in Boston can feel the damaging effects. The agency cannot really say how long the delay will last or when they will get back online. In the meantime, people working in the agency cannot use their email or enter the agency’s website. Ransomware attacks became popular in 2015. The attackers mainly targeted police agencies that end up paying the ransom. The public infrastructure is always a target of ransomware attackers since the offer public services and cannot end up being crippled because the people are the ones who pay the higher price. The public defenders didn’t say how much money the attackers demanded. However, the cost to unlock a computer could start from $100 up to thousands of dollars. The attackers usually target victims individually but law enforcement agencies or other government agencies are not excluded. Last year, a couple of Dutch hackers were sentenced to community service after attacking more than 1,000 computer systems and gathering over $11,000.
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