Coinbase Steps Up After Hacking Incident
In a recent turn of events, the U.K. division of cryptocurrency exchange Coinbase has agreed to facilitate the return of lost Bitcoin to a phishing attack victim. This decision follows a court order demanding the hacker’s identity be revealed, making it one of the first cases of its kind in the nation.
The Phishing Attack Breakdown
On Sept. 10, legal outlet Law360 reported that Coinbase U.K. would transfer a total of 60 Bitcoin (valued at approximately $815,744) that had been siphoned off to its wallet from Liam Robertson, a victim of a sophisticated hacking scheme. Robertson’s funds were grabbed during a spear-phishing attack, cleverly disguised as a legitimate transaction from an investing firm.
The Legal Ramifications
With 60 of the stolen Bitcoins finding refuge in Coinbase, and an additional 20 coins sent to various local exchanges, this case has now opened a Pandora’s box for future crypto litigation. Robertson’s legal team believes this incident could pave the way for victims to reclaim hijacked crypto through established legal frameworks that categorize this digital currency as a specific type of asset or financial resource.
Crypto Classification in the U.K.
Until recently, the legal standing of cryptocurrencies in the U.K. has remained murky at best. A July court ruling that prohibited Coinbase from transferring or dissipating stolen cryptocurrencies marks a vital step toward recognizing Bitcoin and other digital assets as property. The Jurisdiction Taskforce, set up by the government back in May, is currently sifting through public consultations to finalize the legal status of these assets, aiming to minimize uncertainties that deter potential investors.
A Surge in Cybercrime
Cybercriminals have made off with hefty sums in recent years. According to blockchain security company CipherTrace, a staggering $4.3 billion was stolen through various schemes—think outright thefts, scams, and dubious transactions—throughout 2019 alone. Robertson’s case underlines the pressing need for stronger legal protections for cryptocurrency holders and places the spotlight on the need for robust regulatory frameworks in the crypto space.
