The perils of suing crypto exchanges after ransomware assaults By Cointelegraph

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The perils of suing crypto exchanges after ransomware assaults

In October 2019, unknown hackers infiltrated a Canadian insurance coverage firm by putting in the malware BitPaymer, which encrypted the agency’s information and IT programs. The hackers demanded a ransom of $1.2 million be paid in (BTC) in return for the decryption software program wanted for the agency to regain entry to its programs.

The agency’s United Kingdom-based insurer — recognized solely as AA — organized to pay the BTC ransom, and the agency’s programs had been again up and operating inside a number of days. In the meantime, AA began the method of in search of authorized avenues to get better the BTC obtained by the hackers. It engaged the blockchain investigations agency Chainalysis, whose investigations revealed that 96 of the 109.25 BTC paid had been transferred to a pockets linked to the Bitfinex trade.

Stephen Elam is a associate and Shelley Drenth is an affiliate at Cooke, Younger & Keidan LLP, a disputes regulation agency that repeatedly advises on litigation and regulatory points, in relation to cryptocurrency.