Mining Giant Bitmain Sues Unfamiliar Hacker for Alleged Theft of $5.5 Million in Crypto

China-based Bitcoin (BTC) mining giant Bitmain has sued an anonymous hacker for the alleged theft of cryptocurrency value $5.5 million from Bitmain’s account on Binance in April, according to a lawsuit submitted with the U.S. District Court for the Western District of Washington at Seattle on Nov. 7.

As said in the court doc, an unidentified hacker, referred to as “John Doe” in the case, managed to acquire more than Bitmain’s Binance account and utilised saved Bitcoin to manipulate the price tag of altcoin Decentraland (MANA) and then steal the profits.

Bitmain suggests in the court docket document that the amount of the company’s losses “exceeds” $5.5 million in “Bitcoin and other digital property,” and specifying that the defendant was able to steal “approximately 617 BTC.” The doc cites that the unauthorized action took put on April 22, when Bitcoin was buying and selling at all around $8,935.

The document also points out that as a portion of the “scam,” the unidentified hacker utilized two of their possess accounts on now-next greatest crypto exchange Binance, as perfectly as on Bittrex, with all-around 2.3 million MANA presently acquired on Bittrex. “John Doe” reportedly put acquire orders from Bitmain’s electronic wallet presenting to buy MANA “and other electronic assets” with Bitmain’s bitcoins at a selling price that was “far above the likely current market rate.” The defendant also allegedly even more artificially inflated MANA’s rate by working with Bitmain’s BTC to invest in Ethereum (ETH), which was then made use of to acquire MANA.

In accordance to the lawsuit, the hacker further carried out a selection of orchestrated trades in the reverse path amongst BTC and MANA from Bitmain’s wallet and their personal, inevitably reportedly completing the theft by transferring BTC from their Bitmain account “ultimately into a electronic wallet on the Bittrex cryptocurrency investing platform.”

In Mid-Oct, Cointelegraph noted that losses induced by hacks of crypto exchanges in the very first 9 months of 2018 have exceeded the numbers for the entire year of 2017 by 250 percent, with $927 million stolen.

Leave a Reply