Interesting Dutch court case:

* customer of custodian wallet lost coins due to their own email getting hacked

* custodian had reminded customer to turn on 2FA, but he/she didn't

* judge decides that custodian has to refund 90% (only allocating 10% to the customers fault)

The main argument here is that the situation is similar to fiat banking, where a bank is expected to protect its customers to a very large extend, and generally has to pony up the money if things go wrong. In this case the custodian should have made 2FA mandatory, and knowingly took the risk of not doing so.

This sets a huge precedent for custodians that should dramatically increase their costs. Which makes self-custody more attractive. Which is good for Bitcoin.

https://bitcoinmagazine.nl/nieuws/bitcoin-meester-moet-3800-euro-terugbetalen-nadat-account-van-klant-is-gehackt

Reply to this note

Please Login to reply.

Discussion

nostr:npub1s6z7hmmx2vud66f3utxd70qem8cwtggx0jgc7gh8pqwz2k8cltuqrdwk4c But the cost for the custodian wouldn’t increase much if they make 2FA mandatory. Which would be a win/win for both parties.

For larger amounts self custody is the preferred option of course.

That's not the point though. With mandatory 2FA hackers will find another way and unless it was total recklessness of the customer, this precedent seems to mean the custodian may be on the hook.


which is good for Bitcoin.

Heartening genre of posts where such is the conclusionđŸ”„

Its not good if people aren't taking responsibility for their bitcoin

The lesson here is that custodians can’t trust their users.