AWARD OF ARBITRATOR
I, Dani Schwartz, THE UNDERSIGNED ARBITRATOR, having been designated in accordance with the arbitration agreement entered into between the above-named parties, and having been duly sworn, and oral hearings having been deemed waived in accordance with the Rules, and having fully reviewed and considered the written documents submitted to me by Claimant, and the Respondents having failed to appear after due notice by mail in accordance with the Rules of the American Arbitration Association, hereby, AWARD, as follows:
Claimant is the owner/operator of a cryptocurrency exchange doing business under the name "BitMart." Among the cryptocurrencies traded on the BitMart exchange is Bitcoin Satoshi Vision ("BSV"). The 92 Respondents registered accounts on the BitMart exchange to become users of the exchange. After registering their accounts, in or about July 2021, Respondents carried out a malicious "51% attack" on the BSV blockchain. By briefly taking over the mining, or hashing, power on this blockchain, Respondents were able to implant a trail of sham transactions that resulted in the appearance of Respondents possessing 91,000 authentic BSV tokens. By virtue of Respondents' temporary manipulation of the BSV blockchain, Claimant was duped into treating the sham BSV tokens as authentic, and collectively credited a total of 91,000 authentic BSV tokens into digital wallets linked to Respondents' accounts. Respondents then immediately traded the authentic BSV tokens in their accounts for other cryptocurrencies, totaling in value approximately $6,070,000.00 as of July 10, 2021. Of this sum, Respondents transferred $5,027,000.00 worth of cryptocurrency onto other exchanges. Claimant was able to freeze some of Respondents' accounts before Respondents could empty their accounts of all authentic cryptocurrency.
The above sums are to be paid within forty-five (45) days from the date of this Award.
This Award is in full settlement of all claims submitted to this Arbitration. All claims not expressly granted herein are denied.
May 2, 2022
Dani Schwartz, Arbitrator