- Crypto miner Gryphon Digital is seeking dismissal from a lawsuit brought by its former partner Sphere 3D over a spoofing attack that resulted in 26 Bitcoins (BTC) being transferred to a fraudulent address.
- The initial complaint filed by Sphere 3D in April alleges that Gryphon CEO Rob Chang wired 18 BTC in January to a fraudster posing as Sphere 3D’s chief financial officer through a spoofing attack. Within a few days, eight more Bitcoins were sent to the same address, resulting in a total loss of over $500,000 at the time.
- Gryphon claims 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 attacker.
- A spoofing attack is when a hacker pretends to be a trusted entity to deceive a system or user. This kind of scam can occur across various platforms, such as email or IP addresses. The goal is often unauthorized access, data theft, or malicious activity redirection.
- Gryphon has also filed claims against Sphere 3D for breach of contract, negligence, and defamation.
- The partnership between Gryphon and Sphere 3D began in August 2021, with Gryphon managing Sphere 3D’s “crypto mining activities”. The plans to merge under the Gryphon brand were scrapped in April 2022.
Cointelegraph reached out to Sphere 3D, but did not receive an immediate response.[Magazine: $3.4B of Bitcoin in a popcorn tin — The Silk Road hacker’s story]