Gryphon Digital Has Sought Court Dismissal Of Sphere 3D’s Lawsuit

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Gryphon Digital
Cryptocurrency mining rigs sit on racks at a Bitfarms facility in Saint-Hyacinthe, Quebec, Canada, on Thursday, July 26, 2018. Bitcoin has rallied more than 30 percent in July, shrugging off security and regulatory concerns that have plagued the virtual currency for much of this year. Photographer: James MacDonald/Bloomberg

Gryphon Digital, the crypto miner, has been looking towards dismissal from a lawsuit that had been brought by the former partner Sphere 3D over a spoofing attack that resulted in around 26 Bitcoins being transferred to an entirely fraudulent address. According to the initial complaint, which had been filed by Sphere 3D in April, Rob Chang, the CEO of Gryphon, allegedly wired close to 18 BTC in January to a fraudster who had been posing as the chief financial officer of Sphere 3D through a spoofing attack.

Within just a few days, eight more Bitcoin had been sent to the same address, which resulted in a total loss of over $500,000 at the time. Gryphon, on the other hand, has claimed of being a major victim of Sphere’s gross negligence, which allowed a malicious actor to access the computer system of Sphere, send spoof emails from the domain, and then cause Gryphon to send cryptocurrency which was intended for Sphere to the attacker. 

Gryphon Digital Has Been The Victim Of Spoofing

The court documents that had been filed on 18th August, read that the utter and complete lack of care shown by Sphere with respect to security, safeguarding, and control of the technology systems resulted in Gryphon Digital sending around $500,000 worth of Bitcoin to the hostile threat actor, which the company has been pretty unable to recover.

For those who are unaware, a spoofing attack is when a hacker tried to pretend to be a trusted entity in order to deceive a user or a system. This scan can occur across various platforms, such as IP addresses, or email. In a previous statement put out about the litigation, Patricia Trompeter, the CEO of Sphere 3D, stated that Gryphon Digital had put the assets of the company at significant risk, as well as wilfully violating their contractual duties.