Seoul District Court: Coinone to compensate for losses after hack

Posted 03 October, 2019

The first case when cryptocurrency exchange refund clients have been recorded in South Korea. The District Court of Seoul ordered that Coinone must compensate for losses faced by the victim of the hack worth about $50,000.

According to the local media, the client demands via the court compensation from the platform citing that the exchange must block transactions coming from the foreign IP addresses. The losses amounted to KRW 58 million ($48,300). It was also added that the hacker withdrew the funds exceeding the daily withdrawal limit set by the country's financial regulation at $20 million.

For reference, the plaintiff started using the platform's services in April 2017. Accroding to the avaiable information, the deposits reached some KRW 58 million by November 2018. The exchange was hacked in December after which the funds were stolen.

The hack attack was made via Dutch IP address. In particular, the hacker got access to the account, acquired cryptos and withdrew assets.

The district court accepted some of the comments made by Coinone. The exchange was not found guilty and it was determined that it was not obliged to block foreign IP addresses.

However, it was stated that the exchange must meet withdrawal limits. The court ordered that Coinone must pay compensation in the amount of KRW 25 million. 

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