NAPLES, Fla., Dec. 8, 2022 /PRNewswire/ -- Earlier this week, Chris Vernon and Benny Carollo of Vernon Litigation Group filed a multi-million-dollar arbitration claim before the American Arbitration Association ("AAA") against one of the largest cryptocurrency exchanges in the world ("Respondents"). The claim relates to a systematic and troubling security flaw in the exchange's non-custodial electronic wallet which is used to store crypto currency and digital assets. Due to a flawed user interface designed to lure users into a false sense of security, cyber criminals were able to hijack the electronic wallet of a customer of the exchange and effectively drained all the digital assets therein without the customer's authorization.

While there exists a number of cyber scams seeking to steal cryptocurrencies from retail investors, the scammers utilized fake liquidity mining pools to recruit retail investors and steal the crypto in their electronic wallet. Once an investor is convinced to join the liquidity mining pool, the scammers employ a malicious smart contract and exploit the flaw in the exchange's electronic wallet via its decentralized application ("DApp") function. As a result of this major security flaw, scammers have stolen massive amounts of digital assets without authorization.

Accordingly, the claim was brought against the exchange for, among other things, federal and state statutory violations, negligence, negligent failure to warn, conflicts of interest, and misleading advertisements in connection to the exchange's depiction of their electronic wallet as "the safest" and "most secure" in the crypto industry. The claim seeks to hold the exchange liable for compensatory damages in excess of $2 Million Dollars, as well as treble and punitive damages.       

Case Number is 01-22-0004-9994.

Media Contact:
Pam Tidwell
ptidwell@vernonlitigation.com
239-319-4434

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SOURCE Vernon Litigation Group