A UK-based cyber insurer has walked away from high-profile litigation against Bitfinex. The insurer was seeking to recover a bitcoin ransom it paid out under a cyber-policy, and argued that Bitfinex should be liable to pay damages despite bitcoin being innocently received onto its exchange. The discontinuance confirmed today by the High Court means the insurer will not receive any compensation from Bitfinex but instead will reimburse Bitfinex for its attorney costs, which once fully assessed will be considerably more than GBP 100,000.
Stuart Hoegner, General Counsel at Bitfinex said:
“Bitfinex stood firm against baseless claims – now abandoned – not grounded in fact or law, but a desire for compensation. Legal systems should never be used as a blatant attempt to extort settlements. This sends an important message that Bitfinex will stand by the facts and truth, and will not bend to unsubstantiated claims. Bitfinex will continue to defend itself, its customers and the industry to the fullest extent.”
