Gryphon Digital Seeks Dismissal Of Lawsuit Over Spoofing Attack
Crypto miner Gryphon Digital is attempting to have a lawsuit brought against them by former partner Sphere 3D dismissed. This lawsuit was filed in April and is in response to a spoofing attack that resulted in 26 Bitcoins (BTC) being sent to a fraudulent address.
Rob Chang, CEO of Gryphon, allegedly wired 18 BTC in January to this fraudster posing as Sphere 3D’s chief financial officer. Eight more Bitcoins were sent in the following days, resulting in a total loss of over $500,000 at the time.
Gryphon is claiming to be a victim of Sphere’s “gross negligence” that allowed a malicious actor to access Sphere’s computer system, send spoof emails from its domain, and cause Gryphon to send cryptocurrency intended for Sphere to the hacker. The court documents filed on Aug. 18 state that “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”.
Latest AI Technology in Spoofing Attacks
A spoofing attack is when a hacker pretends to be a trusted entity, utilizing the latest AI technology, to deceive a system or user. This type of scam can occur across various platforms, such as email or IP addresses, with the goal often being unauthorized access, data theft, or malicious activity redirection.
In a previous statement about the litigation, Patricia Trompeter, CEO of Sphere 3D, stated that “Gryphon has put the Company’s assets at significant risk and willfully violated their contractual duties.” In addition to dismissing allegations related to the transfer of assets, Gryphon has also filed claims against Sphere 3D for breach of contract, negligence, and defamation.
The lawsuit is the latest stage in a partnership that began in August 2021, with Gryphon managing Sphere 3D’s “crypto mining activities”. The two companies had planned to merge under the Gryphon brand, but scrapped the merger in April 2022, claiming it was a mutual decision.
Cointelegraph reached out to Sphere 3D, but did not receive an immediate response.
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