Luno Malaysia has issued its official statement in response to a recent court outcome, where an investor was awarded almost RM700,000 in compensation after filing a suit against Luno for failing to safeguard the funds and cryptocurrencies in his account.

In its statement, Luno explained that while it has some of the most intense security processes in crypto – making it one of the safest crypto exchange in the market – the recent case is actually “not an issue of the safety and security of the Luno platform”. Rather, it was a situation where the investor, Yew See Tak’s personal details were compromised.

According to Luno, Yew claimed that the purchase and transfer of Bitcoins had happened without his knowledge and approval, but he also acknowledged that he had, unfortunately, lost control and access to his personal email account and password, and that his mobile device was ‘hacked’. As a result, an individual with Yew’s personal details was able to carry out the transactions in question.

The digital assets exchange (DAX) operator further stated that Yew acknowledged that it was his responsibility to ensure the security of his email and password, instead of Luno’s.

“The Luno security features in place worked as they were designed to and these transactions were only possible because an individual 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 commented.

Luno further stressed that as a DAX platform regulated by the Securities Commission Malaysia, it is committed to following strict procedures to keeping customers’ cryptocurrencies safe and secure. It has also taken steps to provide customers with a range of educational materials and encourage them to use additional layers of account protection made available by Luno. However, customers, too, are required to play their part by maintaining the security of their personal details.

“Luno nonetheless fully respects the Court’s decision, and will therefore not be making any further comment on the matter while it remains before the courts. We are in close contact with our external counsel in relation to an appeal against the decision,” Luno said.

Luno has been granted an interim stay of 14 days before it needs to pay the awarded sum to Yew, and it is set to submit an appeal with the High court against the Sessions Court’s decision.

• TAGS:
• Bitcoin
• Court Rulings
• Courtroom Cases
• Cryptocurrency
• Luno Malaysia
• Sessions Court
• Yew See Tak