Sphere 3D Sues Gryphon Digital For Intentionally Losing $500K BTC

Key Points:

• Bitcoin miner Sphere 3D has sued its partner Gryphon Digital Mining for losing $500,000 in bitcoins in a phishing attack.
• Gryphon sent his business partner’s bitcoins to a hacker posing as the CFO of Sphere 3D.
• Sphere said in the lawsuit that it is seeking more than $75,000 in damages, excluding interest and expenses.

The bitcoin mining company Sphere 3D is suing Gryphon Digital Mining for failing to act in the best interests of the companies’ partnership and for losing $500,000 of its bitcoin in a spoofing attack.

“Today’s filing demonstrates that we will not only protect the company that we all have worked so hard to navigate through the past year but also that we will not be bullied or threatened by the likes of Gryphon,” Trompeter said in a statement.

According to the complaint, Gryphon allegedly transferred $500,000 in bitcoin owned by its business partner to a hacker posing as Sphere 3D’s CFO. Gryphon CEO Rob Chang wired 18 of Sphere 3D’s bitcoin to an address belonging to a fraudster posing as the company’s chief financial officer in January and another eight bitcoin to the same address a few days later. The complaint was filed with the Southern District of New York on Friday. The lawsuit also asserts that Gryphon misrepresented its computing power in public disclosures and rendered “abhorrent” services to its partner.

Sphere 3D further alleges that “Gryphon panicked when Sphere suggested that the incident be reported to law enforcement, including the Federal Bureau of Investigations (‘FBI’), insisted that the issue could be handled between the parties, and demanded that no one report the theft to the authorities.”

The lawsuit also alleges that Gryphon has dutifully collected its exorbitant Management Fee while shirking its duties under the MSA and delivering abhorrent management services, and skimmed off the top from Sphere’s assets.

According to the lawsuit, Sphere 3D’s attorneys are requesting damages “in excess of $75,000, exclusive of interest and costs.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News