Cryptocurrency exchange Luno has been ordered by a Malaysian court to reimburse a client approximately US$128,000 in digital assets lost due to a hack, raising concerns about security standards in the industry.
In a legal victory, Yew See Tak won nearly RM700,000 against Luno Malaysia for negligence following unauthorized transactions from his account in 2021. Yew’s legal team argued that Luno failed to protect the cryptocurrencies in his account, leading to a substantial loss.
The Sessions Court judge found Luno negligent and ordered compensation for the losses, plus additional exemplary damages totaling over RM697,000. Luno has obtained a temporary pause on the decision and may appeal at the High Court.
This ruling sets a significant precedent in Malaysia’s cryptocurrency law, highlighting the accountability of platforms for breaches in customer accounts and potentially prompting increased security measures in the industry.
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