The Japanese-based crypto exchange, Fisco, filed a negligence lawsuit against the top-performing cryptocurrency exchange, Binance, on Monday, September 14th. The action filed in the Northern District of California seeks to address the 2018 hack suffered by the foreign company.
Court documents showed that the plaintiff, formerly known as Zaif alleged that it lost about $60 million worth of Bitcoins, Bitcoin Cash, and MonaCoin when the hack occurred. Fisco claimed that the hackers sent $9.4 million in crypto to Binance exchange accounts and addresses after gaining access to its hot wallets.
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The complaint stated that the defendant facilitated the laundering of the stolen funds due to its negligence. According to the plaintiff, the thieves laundered the funds through Binance by taking advantage of the company’s policy that allowed new users to open accounts and transact on the exchange in amounts below 2 Bitcoins without providing any user identification and KYC information.
Fisco further claimed that it informed the defendant of the stolen funds on multiple occasions, but the company took no positive action. They noted that Binance had actual knowledge that cryptocurrency stolen from Zaif was transferred to addresses and accounts on the exchange.
The foreign company added that the defendant either intentionally or negligently, failed to interrupt the money laundering process when it could have done so. Fisco wants the court to award punitive damages in its favor, legal damages, and the return of the 1,456 bitcoins laundered on the exchange.
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