Sphere 3D Sues Gryphon Digital for Losing $500,000 in Bitcoin
Bitcoin mining company Sphere 3D (ANY) has filed a lawsuit against its business partner Gryphon Digital Mining, alleging that Gryphon lost $500,000 worth of Sphere 3D’s bitcoin in a spoofing attack and failed to act in the best interest of their partnership. The complaint was filed with the Southern District of New York on Friday.
Allegations of Fraud and Misrepresentation
The lawsuit claims that Gryphon CEO Rob Chang wired 18 bitcoin from Sphere 3D to an address belonging to a fraudster who posed as Sphere 3D’s chief financial officer in January. Additionally, eight more bitcoin were allegedly sent to the same address a few days later. Sphere 3D also accuses Gryphon of providing “abhorrent” services and misrepresenting Sphere 3D’s computing power as its own in public disclosures.
Sphere 3D’s representatives stated in the lawsuit that they are seeking damages “in excess of $75,000, exclusive of interest and costs.”
Protecting Interests and Corporate Integrity
Sphere 3D CEO Patricia Trompeter told CoinDesk that the lawsuit is not only about protecting Sphere 3D’s interests, but also about fighting for greater corporate integrity within the cryptocurrency industry. Trompeter stated, “Today’s 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.”
Gryphon’s Response
As of now, Gryphon’s executives have not publicly responded to the lawsuit, and the company’s representatives were not immediately available for comment.
Conclusion
Sphere 3D’s lawsuit against Gryphon Digital Mining alleges serious allegations of fraud, misrepresentation, and failure to act in the best interest of their partnership. The outcome of this legal battle will likely have implications for the cryptocurrency industry’s corporate integrity and may set a precedent for similar cases in the future.
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