Gryphon Digital seeks court dismissal of Sphere 3D's lawsuit

Crypto miner Gryphon Digital is seeking dismissal from a suit brought by its erstwhile spouse Sphere 3D implicit a spoofing onslaught that resulted successful 26 Bitcoins (BTC) being transferred to a fraudulent address.

According to the archetypal ailment filed by Sphere 3D successful April, Gryphon CEO Rob Chang allegedly wired 18 BTC successful January to a fraudster posing arsenic Sphere 3D’s main fiscal serviceman done a spoofing attack. Within a fewer days, 8 much Bitcoins were sent to the aforesaid address, resulting successful a full nonaccomplishment of implicit $500,000 astatine the time.

Gryphon claims, however, to beryllium a unfortunate of Sphere's "gross negligence" that allowed a malicious histrion to entree Sphere’s machine system, nonstop spoof emails from its domain, and origin Gryphon to nonstop cryptocurrency intended for Sphere to the attacker.

"Sphere’s implicit and utter deficiency of attraction with respect to the safeguarding, security, and power of its exertion systems resulted successful Gryphon sending implicit $500,000 worthy of bitcoin to the hostile menace actor, which Gryphon has been incapable to recover", reads tribunal documents filed connected Aug. 18.

Gryphon Digital's tribunal filing connected Aug. 18 against Sphere 3D. Source: U.S. District Court Southern District of New York. 

A spoofing onslaught is erstwhile a hacker pretends to beryllium a trusted entity to deceive a strategy oregon user. This benignant of scam tin hap crossed assorted platforms, specified arsenic email oregon IP addresses. The extremity is often unauthorized access, information theft, oregon malicious enactment redirection.

In a erstwhile connection astir the litigation, Patricia Trompeter, CEO of Sphere 3D, stated that “Gryphon has enactment the Company’s assets astatine important hazard and willfully violated their contractual duties.”

In summation to dismissing allegations related to the transportation of assets, Gryphon has besides filed claims against Sphere 3D for breach of contract, negligence, and defamation. The suit is the latest signifier successful a concern that began successful August 2021, with Gryphon managing Sphere 3D’s “crypto mining activities”. Back then, the 2 companies planned to merge nether the Gryphon brand. The plans, however, rapidly eroded, and they scrapped the merger successful April 2022, claiming it was a communal decision.

Cointelegraph reached retired to Sphere 3D, but did not person an contiguous response.

Magazine: $3.4B of Bitcoin successful a popcorn tin — The Silk Road hacker’s story