In a significant legal ruling, a Sessions Court in Petaling Jaya has awarded approximately RM700,000 to a businessman who fell victim to a cryptocurrency hacking incident on the Luno platform. This marks the first-ever decision of its kind against a cryptocurrency platform in Malaysia, setting a precedent for safeguarding cryptocurrency holdings.

The plaintiff, Yew See Tak, filed a negligence suit against Luno Malaysia Sdn Bhd (Luno) after losing around RM600,000 in cryptocurrencies when his Luno account was compromised. Yew held Luno responsible for failing to protect his digital assets.

Judge Sazlina Safie of the Petaling Jaya Sessions Court found in favor of Yew, stating that he had provided sufficient evidence to substantiate his claims against Luno.

The court held Luno accountable for negligence and awarded Yew a total of RM697,920.05, which includes the RM597,920.05 that was withdrawn from Yew's Luno cryptocurrency account by an unidentified hacker. Additionally, an extra RM100,000.00 was awarded as exemplary damages.

The court also ruled that Luno must cover the costs and interest on the judgment amount. It's worth noting that Luno is a platform recognized by the Securities Commission in Malaysia.

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Source: The Edge Malaysia