damages Archives -
A major South Korean insurance company reportedly will start offering cryptocurrency exchanges insurance aimed at compensating for damages caused by hacking, according to local media. Currently, few crypto exchanges in the country are insured and hacking damages are not covered.
Introducing Hacking Insurance
A major South Korean insurance company, Hanwha Insurance, is reportedly introducing a new type of cyber insurance product this month aimed at providing compensation for hacking damages of domestic crypto exchanges, local media reported this week.
The Asia Times described:
Cyber insurance, which [crypto] exchanges have joined in the past, is a compensation for the leakage of personal information, but the new product also compensates for the damage caused by hacking.
Hanwha Insurance was quoted revealing that they “plan to start negotiations with individual exchanges for insurance from next month.” However, the company added that “even if the exchange wants to join, it will require much coordination, as the insurance and reinsurance companies need to meet in order to get insurance.”
The publication noted, “exchanges may be reluctant to take out insurance if sufficient compensation is not provided or the premium is too high.”
Rising Demand for Hacking Insurance
While Bithumb already has two insurance policies, one with Hyundai Marine & Fire Insurance Co. and the other with Heungkuk Fire & Marine Insurance Co., CBC News noted that they do not cover hacking damages, adding:
Bithumb has two cyber comprehensive insurance policies [covering] violation of information maintenance, data loss and theft, cyber threats, and compensation for investor personal information leakage.
Few Exchanges Are Currently Insured
In June, Business Korea reported that the Korean Blockchain Association was in talks with Hyundai Marine & Fire Insurance Co. and Hanwha General Insurance Co. over how to provide insurance coverage for crypto exchanges of any size. The publication detailed:
The association has been continuously holding negotiations with insurers from April on behalf of its member exchanges. This is because insurance companies are reluctant to accept cryptocurrency exchanges as their policyholders due to their credibility and security issues.
The association has 23 members that are crypto exchanges, including the country’s largest four. Upbit, Bithumb, Coinone, and Korbit already have insurance but the coverage amounts are low. According to the news outlet, Bithumb is insured up to 6 billion won (~$ 5.3 million), Upbit up to 5 billion won (~$ 4.5 million), and the other two exchanges up to 3 billion won (~$ 2.7 million) each.
What do you think of insurance companies offering coverage for hacking damages? Let us know in the comments section below.
Images courtesy of Shutterstock.
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Sinclair Broadcast Group’s proposed $ 3.9-billion deal to acquire Tribune Media is dead.
Tribune announced Thursday that it is terminating the merger agreement. The companies had the option to kill the sale if it had not closed by Aug. 8. The deal was first announced in May 2017.
Tribune also said…
Withcoin, a virtual currency reportedly designed for casinos, and listed on the Hitbtc exchange around May, is accused of selling coins using a promotional video propagating alleged lies and misleading information. In April 2018, a video promoting Withcoin went viral on the internet, inviting investors to purchase in advance a coin that was going to be listed on a crypto exchange in May, the message said.
“If You Buy It Today You Can Become a Millionaire”
The propaganda video was spread by an individual called Matsuyama. Matsuyama, also known on other sites as Koichi Matsuyama, enumerated attractive selling points for buyers, but it was later discovered that most of what he was saying was a lie, according to an overview explanation listed on the Enjin crowdfunding Class Action site. In a project called “Final ICO,” Matsuyama aimed at pre-selling a listed fixed coin that had the potential to increase its price a thousand times. The pre-sale allegedly started in January of 2018 with 1 Withcoin valued at 0.5 yen. However, it was reportedly only possible to purchase the coins by large chunks of 10 million yen. Buyers therefore seemingly purchased Withcoin in groups.
Matsuyama allegedly operated his business without disclosing any company name, and reportedly claimed having a career as a system engineer. He also made affirmations stating that Withcoin would be listed on Binance, then changed the exchange to Hitbtc. He also allegedly claimed in his project that the coin could be exchanged at Okada Manila, a casino in the Philippines, which denied any involvement with cryptocurrencies on its homepage.
Soon after the coin was listed on the crypto exchange, its price fell to about 1/10 of the ICO price, which made purchasers suffer large losses. Enjin explains on its class action page that the business was selling a cryptocurrency giving false information therefore, the sales contract being invalid, the victims can now claim a full refund in Japanese yen at the rate of the time when the coins were sold.
Coin Crashed to 1/20th Its Price
About two weeks after being listed, Withcoin crashed to 0.139 yen. Many investors were tricked and directed to a site after viewing a Youtube video that was inviting viewers to purchase the seemingly attractive coin. As of June, more than 420 victims gathered on the crowdfunding class action litigation project Enjin for reported damages of over 1.3 billion yen ($ 12m). The number of victims claiming to have been duped in the same case has grown ever since. The question now lies in whether Matsuyama was intentionally aiming at tricking investors, which is seemingly difficult to prove. However, testimonies show the Withcoin management team could be proven as having given false explanations to its clients. Youtube is also accused of expanding the damage by introducing Withcoin, according to FXinspect.com, a site that verifies and reviews information on commodity materials mainly sold on the internet.
“I will introduce a very attractive coin,” the man allegedly said, “you can buy it now for 3 yen, but after the coin will be listed, it will be valued at 5 yen. The price will never break […]” the man in the video promised. The investors who viewed the video where guided to a mail magazine online, where the actual trades were carried out.
Considering the lowest offering price as an opportunity, the manager behind Withcoin sold a massive amount of his coins, whose price later fell to 0.14 yen. If the value of the coin had risen from its initial 3 yen, it was theoretically possible to make an expected profit of about 20 times the price of the coin, FXinspect explains. WithCoin had existed since about the end of 2017 or February 2018, however publicity for it started on Youtube around March 2018, the site explaining the class action stated.
Its white paper says that Withcoin is a digital currency “specialized in casinos,” and mentions a casino in the Philippines, without naming any specific venue. “We will realize a digital-currency platform for anyone to easily participate in casinos,” the white paper boldly states.
Okada Manila hotel was unavailable for news.Bitcoin.com’s request for confirmation of whether WithCoin could be exchanged at its casino. However its homepage stated that Okada Manila does not offer or allow the use of bitcoin or other cryptocurrency in its casino or anywhere else in its property. “Okada Manila has never authorized or partnered with anyone regarding the use of bitcoin or other cryptocurrency. Any claim or report that Okada Manila is offering or allowing the use of bitcoin or other cryptocurrency is false, inaccurate and unauthorized,” the hotel homepage says.
A Digital Currency “Specialized in Casinos”
“Okada is well-known as a casino mogul in Japan and Asia, and using his name is clearly an attempt to add an air of legitimacy to an allegedly fraudulent scheme. It also ironically illustrates that for many cryptocurrency isn’t seen primarily as an investment, but more like a gamble,” Jake Adelstein, an investigative journalist and yakuza expert based in Tokyo told news.Bitcoin.com by email.
FXinspect said most videos and websites allegedly created by Withcoin were removed from the internet since the collapse of Withcoin.
What do you think of this class action case against Withcoin? Share your thoughts in the comments section below.
Images courtesy of Shutterstock, FXinspect.com, Enjinclassaction.com, Haji Bashi Coin.
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The post Japanese Class Action Against Gambling Coin Claims $ 12m Damages appeared first on Bitcoin News.
A district court in Kiev Oblast has accepted a lawsuit which is setting a precedent in Ukraine. The plaintiff seeks compensation in bitcoin for “moral damages” caused by law enforcement officials. A preliminary hearing has been scheduled after the presiding judge found no legal grounds to reject the claim.
Setting a Precedent
For the first time in Ukraine’s judicial practice, a claim for compensation in cryptocurrency has been accepted by a local court. Ukrainian citizen Dmitriy G. wants to be paid 1 BTC for “moral damages” he suffered in result of an “unlawful” search. He is suing officers from Ukraine’s Security Service (SBU) and their colleagues from the Prosecutor’s Office who conducted the operation.
Borispolskiy District Court in Kiev Oblast has agreed to look into the case and has even scheduled a preliminary hearing, Forklog reports. Judge Zhuravskiy found no legal grounds to reject the lawsuit, according to a document, acquired by the outlet.
All applicable norms have been observed, according to the court, which has already sent a copy of its resolution to the defendants. They have 15 days to respond officially to the claims made by the plaintiff. If the government agencies fail to do so, the court proceedings will continue based on the available information.
Regardless of the end result, the legal action has already set a precedent in Ukraine’s court practice. If Dmitriy is granted the bitcoin compensation he seeks, that would de facto legalize cryptocurrencies as means of payment in the country.
Bitcoin in Legal Limbo
Technically and legally, the status of cryptocurrencies in Ukraine is still undefined. At least three drafts have been introduced in parliament since last October. One of the bills defines cryptocurrency as property that can be exchanged for goods and services. Another one states that cryptos are financial assets. A third, supplementary draft amends Ukraine’s tax code to introduce exemptions for crypto profits and incomes. No real progress towards the adoption of new legislation has been reported in 2018.
There have been multiple calls, including from officials and institutions, for the regulation of cryptos, like bitcoin. A cybersecurity meeting in January discussed cryptocurrencies and the National Security Council set up a working group tasked to finalize proposals. Ukraine’s Cyberpolice also called for the legalization of cryptocurrencies.
Earlier, the country’s justice minister Pavel Petrenko stated that digital currencies should be brought into the legal field. The State Financial Monitoring Service has already announced its official position on cryptocurrency matters. Ukraine’s parliament, however, has made no significant advances towards adopting a comprehensive regulatory framework.
Some statements suggest that Ukrainian legislators may separate crypto mining and cryptocurrencies in the new legislation. Mining can be legalized in the country before decisions are made in regards to the status and the circulation of cryptos. Recently, Ukraine’s Minister of Economy ordered several ministries and agencies to prepare the documents necessary to add crypto mining to the state register of economic activities.
Do you think similar cases can effectively legalize bitcoin even before dedicated legislation has been passed by lawmakers? Share your opinions in the comments section below.
Images courtesy of Shutterstock, Forklog.
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The post Ukraine to Compensate a Citizen in Bitcoin – for ”Moral Damages” appeared first on Bitcoin News.
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