UK Jeweler Sues Insurer Over Failure to Cover $7.5M Bitcoin Ransomware Losses

Graff Diamonds Corp., a British multinational jeweler, has sued The Travelers Companies, Inc. (Travelers) for not providing indemnity after it paid $7.5 Million in Bitcoin to ransomware hackers.

Graff Sues Insurer Over $7.5M BTC Ransom Loss

A Bloomberg report Wednesday said that Graff’s security systems had been exploited in September 2021 by the Russian hacking gang Conti. This breach enabled the hackers to gain access to data belonging to high-end customers including former US President Donald Trump, the UAE and Qatari royal families.

Conti published 69,000 documents that contained Graff’s private information after the attack and threatened to release more if Graff didn’t pay $15 million in Bitcoin.

Graff paid half of the initial request for $7.5 million to the gang in November 2021. To protect its customers, the company stated that it had to pay ransom.

“The criminals threatened to publish our customers’ private purchase transactions. Graff spokesperson stated that they were determined to protect their interests, and therefore negotiated a payment that successfully neutralized the threat.

The company had expected that its insurer would cover the loss it sustained from the incident because it was an “insured danger.” But Graff has yet to be granted indemnity by Travelers.

“We are very disappointed and frustrated by Travelers’ attempts to avoid settlement for this insured risk.” The jeweler stated that they have given up on us and forced us to file these proceedings at the High Court.

Bitcoin Ransomware Attack on the Rise

Bitcoin ransomware attacks are now common in the last few years.

Elliptic, a company that specializes in blockchain security and analytics, disclosed that DarkSide, the notorious cybercriminal group, had received ransomware payments of $90 million.

CryptoPotato reported in June 2021 that JBS S.A., the largest US meat producer, had been forced to pay $11 million in Bitcoin by hackers to stop ransomware attacks against its plants.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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