Bengaluru, October 16: After losing Bitcoin worth $12,484 USDT, a man in Bengaluru sued an online cryptocurrency trading service and recently lost the legal fight as well when a city consumer court ruled that he was a victim of cybercrime and the crypto trading app was not guilty of service deficiency in the case. On December 15, 2022, Prashanth from Nayandahalli was dealing in cryptocurrencies through the Chennai-based Giottus Technologies when he reportedly faced server issues, and his purchase did not go through.

When he checked onto the Giottus app the next morning, he saw that the 12,484 USDT in his account had disappeared. He connected with customer service and was guided through a few stages, but in vain. Prashanth filed a complaint regarding the theft of his cryptocurrencies but received no response from the company. He subsequently attempted to seek insurance for his stolen bitcoin, as promised by the firm when he enlisted but was refused since cybercrime was not covered by insurance. Cryptocurrency Theft: North Korean Hackers Stole Crypto Assets Worth of USD 721 Million From Japan Since 2017, Says Report.

Prashanth filed a complaint with Bengaluru Police's cybercrime section on December 23, 2022, and then addressed the Bengaluru Urban Second Extra District Consumer Disputes Redressal Commission in Shantinagar with a complaint against Giottus for service deficiency. Prashanth presented his argument in the litigation, which began in early January 2023, through a chartered accountant.

According to the lawyer defending Giottus, the case should be rejected because the complainant was not a customer, he was dealing in cryptocurrency that was not accepted by the Government of India, and his account was hacked throughout the process. As a result, the complaint cannot seek a remedy through this commission, it was contended. Cryptocurrency Theft: Members of Hacker Group 'Pink Drainer' Impersonate As Journalists, Steal USD 3 Million in Digital Assets.

Furthermore, he had entered his credentials onto the incorrect website rather than the Giottus portal, resulting in the hacking and syphoning of all of his Bitcoin. According to the business counsel, phishing is not covered under the insurance plan. On September 19, the court rejected the case, saying that the complaint was a victim of cybercrime and that the crypto firm had done nothing wrong.

(The above story first appeared on LatestLY on Oct 16, 2023 08:33 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website