Crypto Security Firm Fireblock Faces Litigation After Losing $75 Million ETH

[kriptomadness]

Cryptocurrency firm StakeHound has initiated proceedings against the Israeli Enterprise Fireblocks, alleging that NIS 245.5 million cryptocurrencies (about $75 million) have been lost. StakeHound states that Fireblocks was irresponsible, and as a consequence, money was lost and could not be retrieved. Attorneys Eli Cohen, Nuna Lerner, and Alex Feldsher from the Gornitzky & Co legal firm filed the complaint at the district court of Tel Aviv. Fireblocks refuted any mistakes by stating: “Customer produced keys which were kept outside Fireblocks and that customer didn’t store backup from a third-party service provider according to our rules.”

Not your keys, not your coins

https://coinbench.com/crypto-security-firm-fireblock-faces-litigation-after-losing-75-million-eth/

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[Bttzed03]

The story is still a bit messy to me because of the many technical details. So to cut it short, neither of the parties created a back up of the BLS keyshares. Fireblocks agreed to keep the keys but saved it in a temporary storage because it's outside of their usual service. They then urged Stakehound to have a permanent back up with another third party provider but it seems they didn't follow the advise.

There's probably a miscommunication between the two. We'll see how this goes. More details about the terms of the contract will be revealed as the case progresses.