April 23, 2024

South Korean court orders Coinone to compensate for damage to one of the clients received during the hack

South Korean court orders Coinone to compensate for damage to one of the clients received during the hack

The Seoul Southern District Court ruled that the cryptocurrency exchange must compensate for losses incurredvictims during the hacking.

According to the decision of the Seoul District Court, CoinOne (the defendant) is to pay the plaintiff 25 million won ($ 20,890).

As of November 22, 2018 on accountThe plaintiff stored 9 cryptocurrencies, including 47.7 million won and 2718.33894 EOS. On December 23, the funds were used to purchase BTC and transferred to someone else's account.

The login IP address was the VPN server addressin the Netherlands. At the same time, the hacker used the plaintiff's password and individually issued Google Authenticator to complete the transaction. According to CoinOne's policy, the daily withdrawal limit by transferring cryptocurrency to the plaintiff's account was 20 million won. Despite this, the hacker managed to steal a large amount.

The plaintiff insisted that minimal transaction protection measures, such as blocking access to other people's IP addresses, were not set sufficiently, and that BTC exceeded the withdrawal limit.

According to the defendant, CoinOne is not required toprotect the transaction, because the transaction in this case is not a leak or absorption of the plaintiff’s personal information, and the withdrawal limit is set in accordance with a separate government policy and cannot be considered a violation.

In turn, the judge stated that the exchange is obligedintroduce withdrawal limits to prevent financial losses, and if this limit was not respected, exchange operators should be punished. The court ruled that CoinOne must pay the plaintiff 25 million won.