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Xapo and Indodax face crypto lawsuit of harboring 500 stolen Bitcoins

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Xapo, a popular Hong Kong-based Bitcoin wallet provider and Indodax, an Indonesia digital currency exchange, has been accused in a new crypto lawsuit of negligently having stolen Bitcoin funds in their possession, which is worth millions of dollars. The plaintiff looks forward to recovering his lost funds.

German trader calls out Indodax, Xapo in a new crypto lawsuit

A German cryptocurrency trader, Dennis Nowak, recently filed a demand for a jury trial in the U.S. District Court for the Northern District of California. The plaintiff, together with his counsel, David Silver, a longtime digital currency attorney, alleged that both companies aided his fund theft.

Precisely, Nowak claims that his 500 Bitcoins were stolen by unnamed thieves, and both crypto companies, Indodax and Xapo, hold those funds. The plaintiff said the companies allowed criminal activity, whether willing or not, despite knowing that KYC and AML policies were inadequate.

Conclusively, Nowak seeks to regain possession of his lost cryptocurrencies, including an additional relief, the crypto lawsuit notes.

Nowak’s Bitcoin theft dates back to 2018

The German crypto trader seems to have lost the 500 Bitcoin a few days (November 23, 2018) after depositing them in an unnamed crypto exchange in the United States in November 2018. At that time, and the total cryptocurrency was valued at $2,300,000.

According to the plaintiff, the lost Bitcoins were moved to the Xapo wallet and Indodax exchange in a not-so-hidden step. Kroll, an investigation company that tracked the stolen cryptocurrency, reiterated this, saying that the thieves took no apparent steps to hide their path.

Reportedly, about 19.99 Bitcoin was held in the Xapo wallet, while Indodax stored the remaining funds, 479.69 Bitcoin.

So far, crypto thefts have been a ‘thorn in the neck’ for the emerging Industry. Recently, hackers moved a part of 120,000 Bitcoin stolen from Bitfinex, one of the leading digital currency exchanges, Cryptopolitan reported.

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