Chinese Cryptocurrency investor Loses 5.4 Bitcoin after His Huobi Wallet Account Gets Hacked

In a bizarre case reported by a Chinese cryptocurrency website, a cryptocurrency investor lost 5.4 BTC on Huobi after a successful hack on the user’s wallet. The hack gained mass attention from the Chinese cryptocurrency community who chipped in with their theories as to what could have caused the hack. The investor, named Ding, accused the crypto exchange for their poor security systems for causing the hack that caused him an investment worth 140,000 Yuan ($ 20,000 USD). The exchange responded to Ding stating their systems were secure and were not liable to pay for the hack.

The hack took place on January 13th 2019.

Mr. Ding claims that he received a text message from Huobi exchange warning of the danger of a possible hack on his account. Ding was suspicious of this and immediately contacted the support center of Huobi. As a novice, the trader had not activated the 2 factor authentication and had no email address on their account.

A few moment later, the trader could not log into his accounts even after multiple attempts. The support center informed Ding that the hackers had logged in his account using a new IP address. The swift hack enabled the transfer of $20,000 USD worth of Bitcoin to an untraceable wallet. Huobi exchange were not able to freeze the stolen Bitcoin as they were withdrawn from the exchange.

The pain of losing such a huge investment pushed the new investor to contact a cryptocurrency news website and explain his frustrations on the hack. Ding stated that he would like the exchange to follow up the case and refund him the stolen BTC. Ding told 8BTC,

“I just want to get my money back. I will not blame anyone for my own mis-operation. The exchange cannot leave me alone behind when my cryptos have been stolen for no reason.”

In a response to Ding, Huobi PR team released a statement a week later stating they were not to blame for the stolen funds. They were not liable to compensate the investor as their systems remain secure and its operations comply with verification requirements.

A Chinese cryptocurrency security company released a report saying that the hack was likely to be caused by the victim’s text messages being hijacked by pseudo base stations. The amount stolen is impossible to recover according to the firm. Who is to blame for the attack?

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