A judge in the Seoul Central District Court rejected two lawsuits filed against Bithumb for a controversial crypto exchange. These people claimed $ 126,000 and $ 38,000 in damages related to the data breach in 2017, respectively.

According to Fn News, plaintiffs Hong and Seo (both by last name) stated that they lost money due to a phishing attack using identities obtained from the Bithumb breach. The third applicant, Jang, received $ 5,000 to cover his total loss. This amount reflects a dollar value that is significantly lower than the original requirement of $ 27,200.

In all three cases, the court ruled that the exchanges were guilty of negligence, as they could have devoted more resources in terms of security to prevent massive data breaches.

However, the judge held both Bithumb and Jang partially responsible and indicated that the victim had provided details that were not originally included in the data obtained from the center.

To carry out the attack, the cyber criminals pretended to be a Bithumb call center agent, and provided Jung with information that he believed could only be obtained by a Bithumb employee.

The hacker then told Jung that he had made a suspicious attempt to log into his account, and that he needed a verification code sent to his phone number to prevent the suspicious access. Once access was granted, the attacker proceeded to convert Jung’s XRP and ETH into a Fiat command.

The court’s decision came shortly after South Korean police raided Bithumb’s offices on September 2.

The raid was carried out by the Seoul City Police Criminal Investigation Department. This is allegedly linked to an ongoing police investigation involving Lee Jong Hoon, president of Bithumb Korea and Bithumb Holdings.

Source: CoinTelegraph

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