Bitcoin Mining Firm Sphere 3D Sues Business Partner for Losing $500,000 in Bitcoin

Sphere 3D, a prominent Bitcoin mining firm, has filed a lawsuit against Gryphon Digital Mining, its business partner, for allegedly losing $500,000 worth of Bitcoin in a spoofing attack. The complaint, filed on Friday with the Southern District of New York, also accuses Gryphon of failing to act in the best interests of their partnership.

Spoofing Attack and Misrepresentation Allegations

According to the lawsuit, Gryphon CEO Rob Chang wired 18 of Sphere 3D’s Bitcoin to a fraudulent address that belonged to an imposter who masqueraded as Sphere 3D’s chief financial officer in January. In addition, the complaint alleges that Chang wired another eight Bitcoin to the same address a few days later. The lawsuit also accuses Gryphon of providing “abhorrent” services to its partner and misrepresenting Sphere 3D’s computing power as its own in public disclosures.

Sought Damages

Sphere 3D is seeking damages “in excess of $75,000, exclusive of interest and costs,” according to the complaint. Patricia Trompeter, Sphere 3D’s CEO, stated that her company is suing Gryphon not only to protect its own interests but also to fight for greater corporate integrity within the cryptocurrency industry.

Statement by Sphere 3D CEO

“Todays’ 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 provided to the press.

No Public Response from Gryphon

Gryphon executives have yet to publicly respond to the lawsuit, and the company’s representatives were not immediately available for comment.

Protecting Bitcoin Mining Interests: A Call for Corporate Integrity

The lawsuit filed by Sphere 3D against Gryphon Digital Mining underscores the need for corporate integrity within the cryptocurrency industry. With the value of Bitcoin skyrocketing and the market expanding rapidly, companies must prioritize the protection of their assets and safeguard against fraudulent attacks. This incident serves as a reminder that due diligence is crucial when partnering with other businesses in the industry.

Source: Coindesk