Bitmart seeks restraining order to prevent hackers from selling fake BSV

The owner of the cryptocurrency exchange Bitmart has applied for pre-arbitration injunctive relief to prevent Chinese hackers from using fraudulent Bitcoin SV (BSV) On its platform.

According to July 26 ReportAlthough the fraud occurred mainly outside the state, Bitmart’s owner GBM Global Holdings still submitted a bid to a federal judge in New York. The company argued that the Southern District of New York still has jurisdiction over “fraud or manipulation that has a foreseeable impact in New York” and therefore requires judges to intervene before hackers can publicly sell illegal cryptocurrencies. market.

According to reports, the bid was heavily edited, claiming that if there is no intervention, it will become more difficult to recover funds on behalf of affected users. Bitmart claimed that hackers defrauded at least 43 of its users in the United States by violating the U.S. Commodity and Transaction Law by casting fraudulent BSV.

The Swiss-based Bitcoin Association first detected fraudulent coins on July 8. According to reports, they were generated through a block reorganization attack on the Bitcoin SV network-that is, illegally forking the blockchain to facilitate double payment of coins.

related: The decentralized lending protocol bZx was hacked twice in a few days

According to reports, Bitmart, headquartered in the Cayman Islands, has discovered fraudulent transactions related to the attack, involving at least eight other cryptocurrency exchanges, including Binance, Huobi, Okex, and Kucoin. GBM strengthened its appeal to the New York judge by stating that it has been able to “identify at least two fraudulent transactions between the defendant and two New York users of the cryptocurrency exchange.”

GBM further claimed that hackers “transferred cryptocurrencies to other exchanges that serve New York customers with the intent to sell them”, adding that “if they are allowed to make such sales, they will almost certainly trade with counterparties in New York. “GBM believes that it hopes to obtain interventions that can protect its users:

“The defendants are foreign, unrecognized hackers with intent to defraud. It is almost impossible for them to pay damages. Unless they receive an injunction against the identified and fraudulent cryptocurrency, the petitioner cannot guarantee the ultimate recovery.”

although Hacking and exploiting More and more attention is paid to the nascent DeFi field, and centralized crypto exchanges are still vulnerable to them. In 2020, the most prominent cases involved Singapore Exchange KuCoin, Although other smaller hacks have affected Italian platform Altsbit, Which includes.