Bitmain Sues Binance Hacker Over 5.5 Million BTC

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The renowned mining giant, Bitmain, has sued an anonymous hacker over its loss of $5.5 Million BTC.

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The company works with creating specialized mining equipment. It filed a lawsuit against some unknown individuals after the company’s account was hacked and some funds were stolen.

The mining company seeks justice

Crypto exchange hacks have become more common in recent times. In many cases, individual users have been affected. From time to time, companies associated with projects as well as companies can be abused. Due to this intrusion, the mining giant lost up to 617 bitcoins. This amounts to approximately $5.5 million when the theft was done.

The stolen funds were probably not converted to US Dollars. The suit claims that the funds were moved to the Bittrex Exchange. This platform may have been used by the hacker to inflate the price of the unpopular altcoin, Mana.  Presently, there is no evidence that it was a money-laundering attempt or if it was for a nefarious activity.  The transparent nature of bitcoin makes it a lot easier to track the destinations or origins of some transactions.

For some unknown reasons, the account hacker on Binance didn’t empty the account completely. Rather, the person left more than 200 Bitcoin in Bitmain’s account. It is still unclear why this was done in this manner. The mining giant alleges that the hacker intended to defraud the company and planned to cause damages to the firm.

Tracking the real culprit

It may be difficult to track the real culprit. However, the lawsuit was instituted for another reason. The suit was filed officially against “John Doe”. This implies that the company and its legal representatives do not know the identity of the culprit. The filing was done in Washington for specific reasons. Bittrex, an exchange involved in the hack is based in Washington.

Considering the fact that the identity of the hacker is unknown, the result of the lawsuit is in question. The company’s main intent is to uncover the identity of the individual responsible for the financial loss. It is difficult to predict whether taking this action will help in the case. It is sad to see a prominent brand fall victim to account issues.

The lawsuit comes after another crypto related filing. Many cryptocurrency investors have filed charges against two US telcos over some SIM swapping incidents. At this point, it is likely that more legal proceedings will follow considering how common exchange hacks are. However, it is not clear how this will affect the operators of exchanges in the near future.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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