BitPay Sues Insurer After Losing $1.8 Million in Phishing Attack

Stan Higgins reports:

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 prompt CEO Stephen Pair and executive chairman Tony Gallippi to authorize three payments totalling 5,000 BTC on 11th and 12th December, including one transaction from a wallet on the bitcoin exchange Bitstamp.

BitPay filed a claim for the losses days after the event with Massachusetts Bay Insurance Company, which later denied the claim in a letter dated 8th June.

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