10:12 AM EDT, 07/17/2024 (MT Newswires) -- Gryphon Digital Mining ( GRYP ) said Wednesday that Sphere 3D ( ANY ) had conceded that it will no longer seek to impose liability against Gryphon in connection with the impersonation of Sphere's chief financial officer in 2023.

Gryphon continues to seek damages of about $45 million from Sphere for Sphere's alleged breaches of their master services agreement, Gryphon said.

Sphere conceded during a June 27 conference in the US District Court for the Southern District of New York, Gryphon said, adding Sphere's concession means that Gryphon is no longer subject to liability for allegations that Gryphon was responsible for a hostile threat actor's impersonation of the Sphere CFO.

The hostile threat actor impersonated the CFO in an email sent to personnel of both companies and sought the transfer of 26 bitcoin from a Gryphon-controlled Sphere wallet, according to Gryphon.

Gryphon said an independent forensic investigation later found that its internal security systems were not breached.

Sphere didn't immediately respond to a request for comment from MT Newswires.

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