Chinese crypto mining giant Bitmain has reportedly filed a lawsuit in Seattle with the U.S. District Court for the Western District of Washington on November 7 against an anonymous hacker for an alleged $5.5 million theft from the company’s Binance account in April.
According to court documents, the unknown hacker, referred to as “John Doe,” was able to take over Bitmain’s Binance account and use stolen Bitcoin to manipulate the market price of Decentraland (MANA), the first virtual reality platform owned by its users.
Specifically, John Doe made multiple purchases of MANA and other digital assets far above market price from Binance’s account, and he simultaneously used a personal wallet to place a sell order for MANA offering to trade MANA for BTC at the inflated price.
After multiple iterations of this fraudulent process, the underlying value of the assets was finally transferred as Bitcoin to John Doe’s wallet on Bittrex, another major crypto exchange.
During April, MANA underwent a massive bull run, increasing nearly 300% by May 3rd, before falling back with the rest of the market in the following months. MANA is currently the 63rd largest coin in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
More: Bitmain Lawsuit Filing
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.