9 Oct, 2019

Bitmain Sues ‘John Doe’ Over Stolen Bitcoin

Never the one to back down from a challenge, cryptocurrency mining company, Bitmain is suing a thief whose identity is unknown. Bitmain submitted the complaint to  the U.S. District Court, Western District of Washington at Seattle, against ‘John Doe’ an unidentified thief stole 617 bitcoin from an account it holds at crypto exchange Binance.

News portal CoinDesk stated, that the theft occurred on April 22, 2018, from the account. Since the value of bitcoin was $8,935, Bitmain claims that it is owed more than $5.5 million in damages and is seeking a jury trial for the same. The company further claims that the bitcoin in its wallet was used to purchase MANA-which is a token for the project Decentraland and the price was far above the “going market rate.”Ad

Interestingly, the thief first bought ether using Bitmain’s bitcoin and then bought MANA with the newly ‘purchased’ ether. The thief then created a sell order with their existing MANA wallet, allowing them to trade Bitmain’s BTC for their MANA “at a correspondingly inflated price. Bitmain stated in its complaint, “Upon information and belief, Binance’s automated system matched the deflated MANA sell order with the deflated MANA purchase order and executed the trade and John Doe obtained significant gains—at the expense of Bitmain. As a result, John Doe benefitted twice from transferring MANA into and out of Bitmain’s digital wallet.”

The complaint was filed in Washington because the alleged thief was slated to have used a Bittrex account to store his spoils. The lawsuit also added that the MANA that was used by the thief was stored in Bittrex and the cryptocurrency exchange is based in Washington.

Although it seems like looking for John Doe is like looking for a needle in the haystack, it will nevertheless be interesting to see how this plays out.