Coinone is a South Korean cryptocurrency exchange that has just been forced to cough up $20,780 to pay a customer who lost money in a 2018 hack.
The exchange was founded in 2014 and the customer who suffered the breach had been trading on it since April 2017, according to Chosun IT.
A hacker used a Dutch VPN server on December 23 2019 to get access to the affected customer’s account by using the customer’s password and Google OTP. The hacker then withdrew money that went above Coinone’s withdrawal limit of ₩20m ($16,588).
The customer took the exchange to a tribunal, claiming that Coinone had failed to put up enough safeguards, for instance blocking overseas IPs.
Coinone denied any wrongdoing and appears to have argued that the hack did not occur due to any fault of the exchange.
The tribunal did not fault Coinone for failing to manage personal information, but faulted it for not adhering to the withdrawal limit. The money Coinone paid back was the money that went above the ₩20m limit.
Copyright © 2018 RegTech Analyst
