Fireblocks to Face Trial for Losing Over $70 Million Worth of Ethereum (ETH)
StakeHound is the first tokenized staking platform, filed a lawsuit against Fireblock, a crypto custody provider.
The institutional liquid staking provider StakeHound alleged the cryptocurrency security company Fireblocks of failing to protect its wallets. According to the accusations, about $77 million worth of ether was irrevocably lost.
The Disappearance of $70M Worth of ETH: Disaster and Damage
The Israeli publication Calcalist reported that StakeHound filed a lawsuit against Fireblocks for losing more than $75 million worth of Ethereum. According to the prosecution, the crypto security company was negligent, resulting in the loss of funds, which can not be restored.
StakeHound pointed out that the main reason for the problem is a major human error. The careless employee of Fireblocks did not protect or back up the private keys to a digital wallet, but even deleted them for no ”apparent reason.”
StakeHound stated :
“This is not a simple situation where the private keys were simply lost. This resulted in a disaster and damage: The defendant irrevocably lost access to the plaintiff’s digital assets, which were deposited in an e-wallet provided by the defendant, causing the loss of 38,178 of the plaintiff’s ETH coins.”
Fireblocks said they were investigating the situation and would conduct a thorough investigation and assist ”all parties involved to resolve the issue.”
