Fun

Sphere 3D’s legal issues escalate as Gryphon seeks to block $10M

News Feed - 2024-03-31 02:03:40

Ana Paula Pereira6 hours agoSphere 3D’s legal issues escalate as Gryphon seeks to block $10MGryphon Digital Mining is seeking to block Sphere 3D from using $10 million from a recent settlement with Core Scientific.1185 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe legal battle between Bitcoin miners Sphere 3D and Gryphon Digital Mining has gotten another chapter on March 25, as a new legal action seeks to block $10 million from a recent settlement. 


In a pre-motion letter filed by Gryphon with the U.S. District Court for the Southern District of New York, the miner requests permission to file a motion for prejudgment attachment, seeking to secure $10 million in equity proceeds that Sphere recently received from a settlement related to Core Scientific’s bankruptcy exit.


Gryphon wants to ensure that the funds are available to satisfy any judgment it may receive due to Sphere’s alleged breach of contract, which has damages amounting to at least $30 million. Sphere is accused of entering into at least four hosting agreements with other providers, violating the exclusivity clause of their agreement with Gryphon.Gryphon"s letter requesting permission to file a motion. Source: Hogan Lovells/Gryphon.


Behind the pre-motion letter lies Sphere’s financial health. According to Gryphon’s letter based on Sphere’s annual report to the Securities and Exchange Commission, the company has publicly acknowledged its potential for bankruptcy, suggesting it may not be able to satisfy future judgments.


“Over the last four months, Sphere has revealed its growing financial troubles. On November 28, 2023, in a filing in the Core Bankruptcy Action, Sphere’s counsel acknowledged that the company was operating with a $200 million net loss and that recent losses had overtaken revenue by a two-to-one margin,” reads the letter.


According to Sphere’s latest earnings report from March 13, the company’s net loss for 2023 was $23.4 million, compared to $192.8 million the previous year, as the crypto winter hit miners.


The companies have been partners since August 2021 and even considered merging under the Gryphon brand. However, in April 2023, Sphere first sued Gryphon after an alleged spoofing attack led to the irregular transfer of Bitcoin.


In January 2023, Gryphon CEO Rob Chang was allegedly scammed into sending 18 Bitcoin (BTC) to a spoofing attacker posing as Sphere 3D’s chief financial officer. A few days later, eight more BTC were sent to the same address. At the time, Gryphon claimed to be a victim of Sphere’s “gross negligence” that allowed activities from malicious actors.


In addition to dismissing allegations related to the transfer of assets, Gryphon has filed claims against Sphere 3D for breach of contract, negligence, and defamation. The partnership was terminated in October 2023.


Cointelegraph reached out to Sphere 3D, but did not receive an immediate response.


Magazine: MakerDAO’s plan to bring back ‘DeFi summer’ — Rune Christensen# Business# Bitcoin Mining# CourtAdd reactionAdd reaction

News Feed

Jesse Coghlan7 hours agoPro-Bitcoin Javier Milei trails as Argentina’s presidential election goes to run-offAnti-establishment Javier Milei was the touted favorite in Argentina’s presidential election but is trailing
3 memorable moments from Donald Trump’s ‘Mugshot’ NFT event
Brayden Lindrea4 hours ago3 memorable moments from Donald Trump’s ‘Mugshot’ NFT eventDonald Trump says he helped make “NFTs hot again” and even dissed his own political rival’s unofficial memecoin — sending
HTC Will Support Binance Chain With Special Edition Smartphone
Smartphone developer HTC plans to provide support for Binance Chain with a new special edition version of its blockchain mobile. The company announced Tuesday that it would release
Crypto Firm Freeway Updates Community, Says Trading Strategy ‘Failed’ and ‘Caused a Substantial Loss’
Crypto Firm Freeway Updates Community, Says Trading Strategy "Failed" and "Caused a Substantial Loss" Four days ago, the crypto rewards platform Freeway.io, formally called Aubit,
Major Australian Investment Firm Moves From Gold to Bitcoin
Major Australian Investment Firm Moves From Gold to Bitcoin A billion-dollar Australian investment management firm has gotten into bitcoin, citing that the crypt
Just How Badly Will the U.S. Crypto Crackdown Hurt Bitcoin?
Following U.S. Treasury Secretary Steve Mnuchin’s warning that the federal government will pursue “very, very strong” enforcement of existing cryptocurrency regulations, various federal agencies and sel
William Suberg13 hours agoBTC price eyes $40K amid record hash rate — 5 things to know in Bitcoin this weekBitcoin on-chain data is pointing to “up only” as BTC price action fights to eke out an uptrend below fierc
Dolce & Gabbana to Launch High Fashion-Inspired NFT Collection in Venice
Dolce & Gabbana to Launch High Fashion-Inspired NFT Collection in Venice This week the Italian luxury fashion house founded in 1985 in Legnano by Italian designe
This Bear Market Indicator Says Bitcoin Price Is Headed For Crash To $40,000, Here’s When
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Biggest Movers: SOL Hits 3-Week High, as ADA Consolidates Ahead of FOMC Meeting
Biggest Movers: SOL Hits 3-Week High, as ADA Consolidates Ahead of FOMC Meeting Solana surged to a three-week high ahead of this afternoon’s Federal Open Market Committee me
South Korea’s ruling party backtracks on spot Bitcoin ETF election promise
Amaka Nwaokocha1 hour agoSouth Korea’s ruling party backtracks on spot Bitcoin ETF election promiseThe People Power Party, led by Rep. Yoon Chang-hyun, intended to announce a virtual asset pledge last week but has post
Japanese village turns to NFTs to help older adults
Yohan Yun59 minutes agoJapanese village turns to NFTs to help older adultsAccording to Yuri Group, the Yamakoshi village’s experimental NFT strategy could attract attention from other nations facing declining birth rat