It’s been a busy two weeks or so for Bitmain. The introduction of their range of new 7nm ASIC miners last Thursday had the crypto mining industry abuzz. But there’s also the small matter of a $5.5 million lawsuit.Just to clarify, the multi-million dollar lawsuit isn’t being directed at Bitmain. Um, no. The filing is being instigated by Bitmain itself.
The lawsuit was filed at the US District Court for the Western District of Washington, the day before Bitmain’s new 7nm miner was made available to the public.
According to court documents, an anonymous hacker referred to as ‘John Doe’ is alleged to have accessed ‘a protected computer without authorization’, relieving the ASIC mining behemoth of around $5.5 million worth of cryptocurrency.
In so doing, ‘John Doe’, bypassed Binance security systems by making use of two separate accounts on the crypto exchange as well as an additional one on rival platform Bittrex.
The thief then had the effrontery to trade between BTC and MANA, transferring 617 BTC from the Bitmain’s account onto his/her own Bittrex wallet.
The lawsuit also states that Doe was already in possession of an estimated 2.3 million MANA and that he/she purchased MANA with BTC that was ‘far above the going rate’ which artificially inflated the altcoin price on Binance.
It was also revealed that the dastardly hacker also used some of Bitmain’s considerable BTC kitty to purchase Ethereum (ETH) which was also used to purchase MABA.
Yet more trades were then made by the hacker in the reverse direction between BTC and MANA, from Bitmain’s wallet to their own account on the ‘Bittrex cryptocurrency trading platform’.
The unauthorised actions occurred on April 22, at which time Bitcoin was trading at about $8,935.
Althouth many in crypto-land will be stuffing their mouths with hankerchiefs to surpress their laughter, it should be kept in mind that the alleged breach of Bitmain’s accounts is an extremely serious matter.