According to Cointelegraph, Gryphon Digital, a crypto miner, refused the lawsuit brought by Sphere 3D, its ex-partner. It is believed that the lawsuit was made for the attack which resulted in the transfer of about 26 Bitcoins (BTC $26,086) to a fake address.
With insights from the filings by Sphere 3D in April, Rob Chang, CEO, Gryphon, allegedly transferred 18 Bitcoin (BTC) in January to a fake account posing as Sphere 3D’s chief financial officer. It is expected that after a few days, eight more Bitcoin were transferred to the same address. Supposedly, about a loss of over $500,000 in total, Cointelegraph added.
“Sphere’s complete and utter lack of care with respect to the safeguarding, security, and control of its technology systems resulted in Gryphon sending over $500,000 worth of bitcoin to the hostile threat actor, which Gryphon has been unable to recover,” Cointelegraph highlighted.
Furthermore, Gryphon has also filed allegations against Sphere 3D for breach of contract, negligence and defamation, Cointelegraph concluded.
(With insights from Cointelegraph)
