One of the largest Bitcoin exchanges in the market is being sued for refunding the funds of a user who lost $ 96,000 in the hack attack.
The victim sued the Bitcoin exchange that did not pay back the investor’s money
Coinbase is being sued by a customer who says he refused to help him after losing $96,000 due to the hack, according to a file in the US District Court for the Northern District of California. According to the court file, the plaintiff lost “90% of his life savings” after his phone was hacked.
Afflicted user Jared Ferguson said on May 9 that he lost his phone line and T-Mobile tech support team got him a new SIM card. After restoring the iPhone service, Ferguson realized that all the money was taken from his Coinbase wallet.
Plaintiff immediately contacted Coinbase and asked him about the security of his device, the last authorized transaction and the list of unauthorized transactions. A little over two weeks later, he was told that Coinbase would not be able to help him.
According to the court filing, Coinbase emailed Ferguson, “Customers … are responsible for any activity that occurs when these devices or passwords are compromised. Please remember that you alone are responsible for the security of your email, passwords, 2FA codes and devices.”
Coinbase has yet to relay its side of the event.
However, Ferguson has now filed a lawsuit against Coinbase, alleging that the crypto exchange violated state law by not fully crediting his account for losses. The user alleges that Coinbase violated the Electronic Funds Transfer Act, which was enacted to protect customers making electronic fund transfers, and section 4A of the California Uniform Commercial Code, which states that a bank must issue a refund if it authorizes an unauthorized order.
Bitcoin exchange is on the agenda with security vulnerabilities
Coinbase confirmed in February 2023 that it was briefly compromised by the same attackers who targeted Twilio, Cloudflare, DoorDash and more than a hundred organizations last year. In an autopsy of the incident published in February, Coinbase said so-called “0ktapus” hackers stole the login credentials of one of its employees in an attempt to gain remote access to the company’s systems.
0ktapus is a hacking group targeting more than 130 organizations in 2022 as part of an ongoing effort to steal the credentials of thousands of employees, often by spoofing Okta login pages. In the case of Coinbase, hackers first sent fake SMS text messages to several employees on Feb.
cryptocoin.comAs Algorand (ALGO), one of the popular altcoin projects, we have recently come to the fore with allegations that it hides security vulnerabilities.
