Bitmain Files Case Against Anonymous Bitcoin Thief

Nov 13, 2018 at 22:30 Update Date :Nov 13, 2018 at 22:30 UTC

Bitmain, the world’s most power-efficient bitcoin miner has filed a case against an anonymous thief in the US federal court.

The thief, that remains unidentified has allegedly stolen 617 bitcoins from a crypto exchange Binance account.

The “as yet-to-be identified ‘John Doe’” stole the bitcoin holdings on 22nd April, 2018. The price of a single bitcoin at that time was $8,935 at the time the thievery took place. The company says that it owes more than $5.5 Million for the damage that occurred.

Bitmain further reports that the thief used the bitcoin in its Binance wallet to buy MANA. MANA is a crypto asset used as a part of the decentraland project- “at a price that was far above the going market rate.”

It has also been reported that the thief has purchased Ether using Bitmain’s BTC wallet. He further purchased MANA using Bitmain’s ETH.

The unknown thief , at the same time, ordered with his existing MANA wallet and traded Bitmain’s BTC with his MANA wallet, that too, at a higher rate.

The attacker said that according to the information received, Binance’s automated system matched the deflated MANA sell order with the deflated MANA purchase order and realised that John Doe (the supposed name of the thief) obtained significant gains at the expense of Bitmain. He added that consequently, John Doe benefitted twice from into and out of Bitmain’s digital wallet.

The complaint regarding the thievery has been filed in Seattle, Washington. It says that the alleged thief has used the account held with Bittrex, a crypto exchange. The complaint filed further says that the MANA stolen by the thief was originally stored in the Bittrex wallet and Bittrex is actually not a Washington based cryptocurrency.

It was also reported that when John Doe finished his thievery of BTC from Bitmain, BTC was transferred out of John Doe’s Binance wallet and was ultimately stored in a digital wallet on the Bittrex cryptocurrency trading platform.

Therefore, the case filed claims that the Washington court jurisdiction has matter based on Computer Fraud and Abuse Act, the Washington Cybercrime Act and other Computer Fraud Laws.

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