Federal Court Dismisses Bitcoin Startup BitPay's Phishing Lawsuit
A legal battle between bitcoin payment processor BitPay and a major insurance company has ended. Filed yesterday, a court order dismissed the suit between BitPay and Massachusetts Bay Insurance Company, a subsidiary of Hanover Insurance, without prejudice. According to the court order signed by US District Judge Steve Jones, the two sides "have reached a settlement in principal". The suit traces back to late 2014, when BitPay lost approximately $1.8m in bitcoin during a phishing attack that targeted the company’s leadership team. At the time, the unknown attacker was able to....
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An insurance company sued by industry startup BitPay following a claim dispute has fired back, denying the bitcoin payment processor's allegations in a new court filing. BitPay originally filed suit against Massachusetts Bay Insurance Co (MBIC) months after it lost 5,000 BTC (then valued at roughly $1.8m) following a phishing attack. The company later alleged breach of contract and bad faith in a suit filed against MBIC. However, in a 17th November court filing, MBIC has stated that it believes it was justified in rejecting BitPay's claim, formally requesting the court to toss the suit. At....
BitPay, the Bitcoin payment processor, has endured a troublesome week. First, it was made public a hacker gained access to the CFO's email account and coaxed the company into sending nearly $2 million. The company recently made major changes to its free plan, as well as apparently laid off numerous employees. The company filed a lawsuit September 15 in Atlanta federal court claiming that, in December 2014, BitPay's chief financial officer, Bryan Krohn, was tricked by a hacker into sending $1.8 million to a hacker. "After capturing Mr. Krohn's Bitpay credentials, the hacker used that....
This piece has been updated with additional information, including the court documents filed by BitPay in federal court. BitPay has filed suit against a Massachusetts insurance company after losing $1.8m during a phishing attack last December. According to documents obtained by the Atlanta Business Chronicle, the bitcoin payment processor was defrauded in mid-December by an unknown individual posing as BTC Media CEO David Bailey, whose computer was infiltrated prior to the attack. The attacker subsequently obtained email credentials for BitPay CFO Bryan Krohn, which were then used to....
It is also important to note that, in Canada, the “loser’ of a lawsuit is forced to pay the costs to the winner. In this particular case, that amount would total up to several millions of dollars, which is simply not feasible for most Mt. Gox victims. The Mt. Gox lawsuit is keeping a lot of Bitcoin enthusiasts on edge as of late, as many affected victims are still holding out hope of a [partial] refund. But over in Canada, the class action lawsuit against Mt. Gox has been dismissed, which is not good news at all. Canadian Mt. Gox Lawsuit Dismissed. Albeit there is an official trustee for....