Bitcoin mining firm Sphere 3D is suing its business partner Gryphon Digital Mining for misappropriation of funds, admitting $500,000 of its bitcoin to a fraudster who masqueraded as its chief financial officer. According to the Southern District of New York, the lawsuit filed by Sphere 3D is seeking damages “in excess of $75,000, exclusive of interest and costs”.

The complaint alleges accused Gryphon CEO Rob Chang of wiring 18 Bitcoin belonging to Sphere 3D to an address belonging to a fraudster and further, 8 Bitcoin to the same address a few days later. Further, Sphere 3D also revealed that Gryphon provided “abhorrent” services to its partner and misrepresented Sphere 3D's computing power as its own in public disclosures.

Sphere 3D’s representatives highlighted that they are taking a deep stand regarding the issue, not just because it is a protection of their own interests, but also to fight for greater corporate integrity within the cryptocurrency industry. Patricia Trompeter, CEO of Sphere 3D, said in a statement that their filing clearly demonstrated that their priority is safeguarding what they built and are not threatened by empty intimidation.

Gryphon executives are yet to respond to the lawsuit. Their representatives were not readily available for comment. Nonetheless, Sphere 3D has made its stand clear by taking them to the court for misappropriation of its funds. According to the lawsuit, Sphere 3D is expecting to receive damages “in excess of $75,000, exclusive of interest and costs”. This could be a wake-up call for companies in the cryptocurrency industry to take a fairer and more transparent approach with their business partners.



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