Two cryptocurrency exchanges – Xapo and Indodax – are going through a lawsuit for storing Bitcoins obtained from theft from a crypto dealer.
Reported by Coindesk on Thursday, the lawsuit alleged that the 2 exchanges collectively are storing almost 500 Bitcoins stolen from the plaintiff Dennis Nowak, a German resident.
Xapo held 19.99 BTC whereas Indodax held 479.69 BTC from the overall 500 Bitcoins of Nowak, the lawsuit alleged.
The courtroom submitting, nonetheless, didn’t specify the identify of the trade from the place the funds had been stolen. It solely specified that the plaintiff was sustaining a crypto buying and selling account with a Northern California-based trade.
“On or about November 20, 2018, Plaintiff deposited into hisU.S.A. EXCHANGE account 500 bitcoin (500 BTC) in three separate deposits: (1) a200 BTC deposit, (2) a second 200 BTC deposit, and (3) a 100 BTC deposit,” the courtroom submitting famous.
Ignorance or intentional?
Based on the plaintiff, the exchanges had been conscious of their insufficient know-your-customer (KYC) and anti-money laundering (AML) insurance policies, however ignored them anyway.
The lawsuit is accusing the exchanges of aiding and abetting the theft and identified the violation of each federal and state legal guidelines by permitting the perpetrators to entry the trade’s companies.
Even the perpetrators didn’t even try to cover the observe of the stolen digital currencies and nonetheless obtained entry to the exchanges.
Filed within the US District Courtroom for the Northern District of California, Nowak additionally employed David Silver, a longtime crypto lawyer, to struggle his case within the courtroom and they’re additionally demanding a jury trial.
Nowak is now searching for a return of his “stolen private property” together with further aid. Notably, on the time of the theft, all of the Bitcoins had been value $2.Three million.
“XAPO and INDODAX every know or ought to have identified that the property stolen from Plaintiff and saved inside their custody had been certainly stolen; nonetheless, XAPO and INDODAX have undertaken no efforts to return these stolen property to Plaintiff,” the submitting added.