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BitPay insurance claim rejected due to contract wording

Discussion in 'CSO' started by RSS, Sep 18, 2015.

  1. RSS

    RSS New Member Member

    BitPay, a Bitcoin payment processor, was hacked in 2014. When it came to filing their insurance claim with Massachusetts Bay Insurance Company (MBIC), they rejected the filing, because the initial incident that led to the $1.85M theft compromised a business partner and not BitPay itself.

    In 2014, BitPay was targeted by a criminal who first went after a business partner.

    On or around December 11, after compromising an email account used by yBitcoin's David Bailey, the person responsible for the theft sent an email BitPay’s CFO, Bryan Krohn, directing him to a malicious website. The website asked for Krohn's credentials, and from that point the criminal had control over the CFO's corporate account.

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