The Sphere 3D cryptominer has archived a lawsuit against its partner Gryphon Digital Mining following an alleged phishing attack that led to the irregular transfer of Bitcoin (BTC), according to court documents dated April 7.
"Today we are filing litigation against Gryphon, the custody management service provider of our blockchain and cryptocurrency related services, for materially breaching the Master Services Agreement ("MSA") that we entered into with Gryphon." saying Patricia Trompeter, CEO of Sphere 3D, in a statement to investors, adding that "Gryphon has placed the company's assets at significant risk and has knowingly violated its contractual obligations."
According to the complaint, Gryphon CEO Rob Chang allegedly transferred 18 BTC in January to a scammer posing as Sphere 3D's CFO via a phishing attack. Another eight Bitcoin were sent to the same address a few days later.
In a phishing attack, an attacker attempts to trick a system or user into thinking they are someone else by falsifying data, such as IP addresses, email headers, or user credentials, to gain access to a system. , steal confidential information or release more. attacks
In comments to Cointelegraph, Gryphon's Chang said the company is "aware of the complaint and looks forward to vigorously defending it." He also stated:
"While we cannot comment on pending litigation, we are confident that our imminent response to the complaint, and the documents and other evidence that will come to light afterward, will speak for themselves."
Sphere 3D and Gryphon have been partners since August 2021. Gryphon manages Sphere 3D's "crypto mining activities" and maintains "fiduciary duties for Sphere's digital assets," the statement said. Gryphon receives 22.5% of Sphere's gross profit as payment for this work.
The Sphere statement also suggests that the relationship between companies that were once considering that a merger has gone bad. Trumpeter noted that the presentation demonstrates that "we will not be intimidated or threatened by people like Gryphon." The executive stated:
"Gryphon did not act with integrity, they did not fulfill our contract and we will hold them accountable."
Cointelegraph reached out to Sphere 3D but did not receive an immediate response. Both companies claim to be committed to growing net carbon neutral crypto mining operations. A merger agreement between the two companies was terminated in April 2022.
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