BitPay, the Bitcoin payment processor, has endured a troublesome week. First, it was made public a hacker gained access to the CFO’s email account and coaxed the company into sending nearly $2 million. The company recently made major changes to its free plan, as well as apparently laid off numerous employees.
The company filed a lawsuit September 15 in Atlanta federal court claiming that, in December 2014, BitPay’s chief financial officer, Bryan Krohn, was tricked by a hacker into sending $1.8 million to a hacker.
“After capturing Mr. Krohn’s Bitpay credentials, the hacker used that information to hack into Mr. Krohn’s Bitpay email account to fraudulently cause a transfer of bitcoin” valued at $1,850,000, according to the lawsuit. Court documents show the transfer was for 5,000 bitcoins. The lawsuit can be seen here. The company ultimately blamed shortcomings in Bitcoin security: “… advances in bitcoin cybersecurity over the last year allow BitPay to further protect funds and better serve merchants and bitcoin users.”