20 February 2017
visit nextgenbanking.co.uk

Users sue Bitcoin exchange over $460k in missing funds

13 August 2012  |  7257 views  |  0 cash

Bitcoin exchange Bitcoinica is being sued by four former users who allege they are owed nearly half a million dollars-worth of the virtual currency, plus damages.

Created by teenager Zhou Tong, Bitcoinica was one of the most successful Bitcoin exchanges until it claimed, earlier this year, that it had been hit by hackers who stole 43,554 coins, worth $87,000.

Tong sold the exchange to UK-based rival Intersango in June but a second attack was suffered within days, with the thief making off with 18,547 Bitcoins worth $90,000. The site has been offline since.

Bitcoinica assured users that the money was stolen from it, not customers, and that all withdrawal requests would be honoured. It set up a claims system but then told users that only half of their money would be returned.

With speculation swirling on forums that Tang himself was behind the hacks, the four plaintiffs have now filed a complaint in San Francisco demanding the $460,457.70 they say they are still owed.

The former exchange users allege that the defendants - Bitcoinica, Intersango and some associated individuals - "knowingly and wilfully conspired and agreed upon themselves to hinder, delay and deprive Plaintiffs of their rights with respect to the monies at issue".

Via The Verge, read the complaint:

Brian Cartmell et al vs. Bitcoinica LP
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Bitcoin exchange loses $90,000 in virtual currency hack

Bitcoin exchange loses $90,000 in virtual currency hack

14 May 2012  |  9076 views  |  0 comments
Bitcoin exchange TradeHill sues Dwolla

Bitcoin exchange TradeHill sues Dwolla

07 March 2012  |  7692 views  |  0 comments
Paxum ditches Bitcoin as Tradehill exchange shuts down

Paxum ditches Bitcoin as Tradehill exchange shuts down

20 February 2012  |  9503 views  |  0 comments
Exchange lets users pay cash for Bitcoin at bank branches

Exchange lets users pay cash for Bitcoin at bank branches

22 August 2011  |  12593 views  |  0 comments
US customs agents turn away Bitcoin-dependant visitor

US customs agents turn away Bitcoin-dependant visitor

27 July 2011  |  11221 views  |  0 comments
Phoney Bitcoins caused MT Gox virtual currency crash

Phoney Bitcoins caused MT Gox virtual currency crash

05 July 2011  |  11799 views  |  1 comments
Bitcoin value crashes after exchange compromised

Bitcoin value crashes after exchange compromised

20 June 2011  |  19006 views  |  0 comments
US senators voice fears over Bitcoin link to online drugs market

US senators voice fears over Bitcoin link to online drugs market

09 June 2011  |  7750 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit capgemini.com

Top topics

Most viewed Most shared
IBM and Visa join forces to turn billions of connected devices into points of saleIBM and Visa join forces to turn billions...
14757 views 11 comments | 50 tweets | 84 linkedin
Nesta launches £5 million Open API challengeNesta launches £5 million Open API ch...
10100 views comments | 21 tweets | 18 linkedin
Jaguar embeds payments into digital dashboardJaguar embeds payments into digital dashbo...
9606 views comments | 48 tweets | 56 linkedin
The fintech effect: Banks buy in to benefits of boosting financial well-beingThe fintech effect: Banks buy in to benefi...
8878 views comments | 15 tweets | 11 linkedin
Kevin the bot uses blockchain to offer insurance for P2P transactionsKevin the bot uses blockchain to offer ins...
7699 views comments | 16 tweets | 12 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job