The ASIC chip manufacturer, Bitmain Technologies Ltd, has filed a lawsuit against an unknown hacker in U.S. District Court. The accused is said to have hacked into Bitmain’s wallet on Binance, to manipulate the market price of MANA. John Doe, as the document calls him, was able to steal about 617 BTC held in the account.
Unlawful Access into Bitmain’s Account on Binance
John Doe is accused of accessing Bitmain’s Binance account on April 2018. This is an account which held a large number of Bitcoins, and it was used to purchase several altcoins, especially MANA coin. In the case of MANA, the accused placed a buy order higher than what other buyers were willing to buy. As a result, the price of the coin was artificially hiked.
At the same time, John Doe used another account on Binance to create a sell order which was in line with the inflated price he had created earlier. This was effective in giving the desired result since MANA has a small trading volume. Consequently, Binance’s automated machine was able to match the buy order with the sell order.
Hacker Sells Their Token at an Inflated Market Price
The accused is said to have owned about 2 million MANA tokens which he later transferred into his own Binance account. These tokens were then sold to other investors who had fallen a victim to the scam and were misled by the sudden hike in price. Based on the lawsuit, he/she was able to sell their tokens at 72 to 192 percent higher than the coin’s initial price.
As part of the scheme, the accused also traded the MANA coin held in Bitmain’s wallet. This was done by creating a buy order lower than the current market rate. Simultaneously, a sell order lower than the market price was created. This also resulted in an immense profit for John Doe. Later, he/she transferred the profits that were made into an account on Bittrex.
Bitmain Seeks for Justice After Losing Over $5 Million
Accordingly, Bitmain claims in its lawsuit that the loss they have incurred is not less than $5,500,000.00. Before the trades by John Doe, their account held 890 BTC, but after the trades, only 265 BTC was left. In Bitmain’s words, they are seeking to know the individual involved, hold them accountable and make them restitute for what was unlawfully taken.
A part of the lawsuit stated that;
Plaintiff Bitmain brings this action against the as-yet-to-be-identified “John Doe” thief who stole valuable Bitcoin (BTC) from Bitmain through unauthorized hacking/access into online accounts. Bitmain seeks to identify the person responsible, hold them accountable, and recover its stolen property.
Bitmain nor the authorities have neither identified the alleged thief. The same goes for his/her location which is currently unknown and makes everything sort of a blur. It can be expected that investigations will be underway.