Fireblocks faces lawsuit over deleted keys to $72M Ether wallet

CoinTelegraph

The crypto-custody firm claims that it was the client’s responsibility to back up the private keys.

Crypto-custody firm Fireblocks is facing legal action by a firm that claims it was locked out of its wallet containing a substantial amount in crypto assets.

Crypto staking platform StakeHound claims that negligence by a Fireblocks employee resulted in tens of millions of dollars worth of crypto assets being lost without any backup available. Fireblocks is an Israeli-based company that provides custody services for businesses and which is working on speeding up digital transactions.

StakeHound filed the lawsuit at the Tel Aviv District Court on June 22 claiming damages for the lost assets. The wallet in question contained 38,178 ETH, equating to more than $72 million at the time.

The court was told that a Fireblocks employee allegedly failed to protect or backup the private keys to the wallet, which were subsequently deleted preventing StakeHound from accessing its assets. In a statement, StakeHound claimed:

“This is a human error committed by an employee of the defendants, who worked in an unsuitable work environment, did not…