Bithumb takes a respite after the Korean Court has dismissed the lawsuit filed by an investor. According to the lawsuit filed in the court, the investor has lost funds worth $355,000 in view of hacking of the Bithumb account. Ahn Park, a 30-year-old investor, has cited the poor security measures adopted by the company for the loss of his funds on November 30, 2017.
According to revelations of the investor to the court, he has deposited $355,000 into the South Korean Exchange and the hacker has exchanged the funds with Ether (ETH) within few hours of deposit by gaining access to Bithumb account. The hacker has conducted 4 separate transactions to withdraw funds to other crypto addresses from the wallet of Ahn Park held in the Bithumb account. After the purported hack, the amount in his account has reduced to a mere 11 cents in Ether.
He alleged that funds are lost due to inadequate security measures provided by the management of Bithumb. It is also revealed to the court that support team of Bithumb has failed to fulfill the financial obligations as a responsible financial firm.
Yonhap News Claims Ahn Park Received 10 SMS Messages Informing Outgoing Transactions
According to revelations of Yonhap News, Ahn Park has received 10 SMS messages on his cell phone on November 30, 2017, informing about the withdrawal of funds from the Bithumb account. However, Ahn Park has refuted the claims of Yonhap News and said he has not ruled out hacking. He further said the cryptocurrency trading platform Bithumb is offering services similar to that of traditional financial services. Hence, the same security rules of e-commerce firms are applicable to Bithumb.
Judge Refutes Claims of Ahn Park and Dismisses the Plea
The judge has refuted the claims of Ahn Park and said the cryptocurrencies are currently not used to purchase goods. Hence, they can not be exchanged for the real cash because of volatility in nature. Cryptocurrencies are speculative in nature. Hence, it is not possible to apply the Electronic Transactions Act to the transactions carried out on the Korean Exchange without the permission of the FSA. Hence, the judge has dismissed the claims of the investor providing a respite to Bithumb.