CoinOne Exchange Ordered to Reimburse Investor’s 25 Million Won in Hacked Assets Case
A South Korean court has ordered CoinOne exchange to cover the losses for an investor whose funds were stolen from the exchange, reported a local daily. A hacker got hands on the investor's login details for the platform and withdrew all his holdings in BTC.
The total amount of funds stolen from his account is estimated to be 45 million won ($20,800), while the daily withdrawal limit on the exchange was only 20 million won. The heist took place in December 2018, and the hacker used VPN to hide the IP address.
Investor argued in the court that the exchange failed to safeguard his assets and thus they are liable for the damages. He said the exchange should have noticed the withdrawal is being initiated from a foreign address and thus must have consulted him first before allowing withdrawal.
The court did not buy the argument and ruled that the safety measure suggested by the investor is not a reasonable measure that the exchange should have employed.
However, in the final judgment, the judge did account for the extra amount withdrawn than the limit set by the exchange, and thus held them accountable and ruled that they must reimburse the additional losses above the withdrawal limit.