Recently, the sessions court awarded a businessman RM700,000 in a suit he filed against the cryptocurrency platform Luno. The suit was filed on the grounds that Luno failed to implement proper measures to safeguard the man’s cryptocurrencies held in his Luno account. The man held Luno responsible after he lost around RM600,000 in cryptocurrencies when his Luno account was hacked into.
Luno has since released a statement in response to the court ruling. In it, the platform reiterates that it has always upheld the strongest levels of regulatory compliance and customer security, following strict procedures to keep cryptocurrencies safe and secure.
The customer’s email and mobile were hacked
According to Luno’s statement, the plaintiff’s claim relates to the purchase and transfer of Bitcoins, which he claims took place without his knowledge and approval. Speaking before the court, the plaintiff acknowledged that he had unfortunately lost control and access to his personal email account and password and that his mobile device was “hacked”.
With said personal information, the perpetrator was able to carry out the transaction. The plaintiff did however acknowledge that it was his, not Luno’s, responsibility to ensure the security of his email and password. Similar events have occurred on other cryptocurrency platforms.
Safety and security of the Luno platform not an issue
According to Luno, the platform’s security measures were working as intended. The only reason why the perpetrator was able to carry out this heist was because they had access to the plaintiff’s email, password and security details (including third-party 2-factor-authentication (2FA) codes) and was able to authorise each transaction via an SMS authorisation link sent to the plaintiff’s mobile phone.
Luno nonetheless fully respects the Court’s decision, and says that it will therefore not be making any further comment on the matter while it remains before the courts. For the time being, Luno says it remains in close contact with its external counsel in relation to an appeal against the decision.
The platform reiterates that this situation is not an issue of the safety and security of the Luno platform as Luno has been shown to have some of the most intensive security processes as confirmed by an April 2023 ranking by CCData. Regardless, Luno wishes to make it clear that the security of their own email accounts, mobile devices, and passwords remain the responsibility of the customers.
In closing, Luno states that it is committed to following strict procedures to keep its customers’ cryptocurrencies safe and secure. The platform also reminds customers that it provides all of its users with a number of additional security features, such as trusted device security and two-factor authentication, and regularly encourages customers to use these additional layers of account protection.