Prashanth from Nayandahalli was trading in cryptocurrency through the Chennai-based Giottus Technologies Pvt Ltd on December 15, 2022, when he allegedly experienced server trouble and his purchase didn’t go through.
He was in for a rude shock the next morning when he logged into the Giottus app and found that the 12,484 USDT in his account had vanished. He contacted the company’s customer care and was taken through a few steps but in vain.
Prashanth lodged a complaint about the theft of his cryptocurrency but didn’t receive a favourable response from the firm.
He then tried to claim insurance for his lost cryptocurrency which was promised by the company when he enrolled but was denied the same on the grounds that cyber-attacks weren’t covered by insurance.
On December 23, 2022, Prashanth lodged a complaint with the cybercrime unit of Bengaluru Police and then approached the Bengaluru Urban second additional district consumer disputes redressal commission in Shantinagar with a complaint against Giottus for service deficiency.
In the litigation that commenced in early January 2023, Prashanth presented his case through a chartered accountant.
The lawyer representing Giottus stated that the complaint should be dismissed as the complainant was not a customer, he was trading in cryptocurrency not recognised by the Government of India, and his account was hacked during the process.
Therefore, the complainant can’t seek redressal with this commission, it was argued.
Moreover, he had logged into the wrong website instead of the Giottus portal and had submitted his credentials, leading to the hacking and siphoning of all of his cryptocurrency. Phishing is not covered under the insurance scheme, the company counsel said.
On September 19, the court dismissed the case, noting that the complainant was indeed a victim of cybercrime and thereafter, there was no deficiency on the part of the crypto company.
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