11:45 AM EDT, 07/18/2024 (MT Newswires) -- Sphere 3D ( ANY ) said Thursday that Gryphon Digital Mining's July 17 press release was "at best misleading."

In the press release, Gryphon claimed that during a court conference on June 27 in the litigation between the two companies, Sphere conceded it was no longer seeking to impose any liability against Gryphon for a spoofing incident in early 2023, wherein a hostile threat actor impersonated Sphere's chief financial officer requesting the transfer of 26 bitcoins from a Sphare wallet managed by Gryphon.

"Gryphon has already effectively compensated Sphere for the impersonation and conceded its wrongdoing here, so Sphere has no need to 'impose any liability for impersonation of its CFO,'" Sphere said in a statement Thursday.

Sphere said the spoofing attack remains the subject of litigation and claims that the attack could have been prevented if Gryphon exercised "industry standard protocols." The company also said it continues to pursue claims against Gryphon, estimating damages exceeding $25 million.

Gryphon did not immediately respond to MT Newswires' request for comment.

Shares of Sphere 3D ( ANY ) fell more than 4% in recent trading activity.

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