Malaysian Court Sets Precedent with RM700,000 Award over Crypto-Wallet Hack

In a landmark decision that's reverberating through the cryptocurrency community in Malaysia, a sessions court has ordered a prominent crypto e-wallet provider, Luno Malaysia Sdn Bhd, to pay RM700,000 in damages for a security breach. This ruling is hailed as a significant moment in the crypto legal landscape, affirming the responsibility of digital wallet providers to protect user funds.
Businessman Yew See Tak, the plaintiff, took Luno to court following an unauthorized withdrawal of RM598,000 by an unknown hacker from his account. The judge, Sazlina Safie, ruled in favor of Yew, stating that he had satisfactorily established his case against the crypto service, which is recognized by the Securities Commission (SC).
In addition to the stolen amount, Yew was granted RM100,000 in exemplary damages, underscoring the court's stance on the seriousness of the custodial duties of financial entities, especially in the burgeoning field of digital currencies.
The incident, which occurred on March 6, 2021, involved three separate unauthorized transactions from Yew's account. Despite Yew's efforts to resolve the issue through customer service channels and a formal letter of demand, the response from Luno was not favorable, leading to the legal action.
The defense, led by a team of lawyers including Faisal Moideen, Maximilian Tai, and Clarence Tang, denied the allegations. However, the court's decision is a clear indicator that crypto platforms are not beyond the reach of traditional legal accountability and consumer protection laws.
Ong Yu Jian, representing Yew, lauded the verdict as a positive sign for the future of cryptocurrency regulation, expressing hope that it will lead to increased safety and trust in digital platforms.

For the readers of MaskEX Blog, this case exemplifies the importance of robust security measures and legal frameworks that need to evolve with technological advancements in finance. As we navigate the digital currency space, vigilance and a demand for accountability remain paramount.

Public Relations @ MaskEX Global

Ayman Shaat

Homepage

Breadcrumbs

generator

https://blog-cms.maskex.com/assets/img/posts/_1200x630_crop_center-center_82_none/Malaysian_Court_Sets_Precedent_with_RM700000_Award_over_Crypto-Wallet_Hack.png?mtime=1699365592

https://blog.maskex.com/malaysian-court-sets-precedent-with-rm700-000-award-over-crypto-wallet-hack

referrer

robots

twitter:card

twitter:creator

https://blog-cms.maskex.com/assets/img/posts/_800x418_crop_center-center_82_none/Malaysian_Court_Sets_Precedent_with_RM700000_Award_over_Crypto-Wallet_Hack.png?mtime=1699365592