Fireblocks reportedly lost over $70 million of Ethereum


Crypto stalking platform Stakehound has sued Fireblocks in Tel Aviv District Court for $77 million worth of ETH damages.

Stackehound, the company’s liquid stocking provider, has accused cryptocurrency security firm Fireblocks of failing to protect their wallets. Allegedly accused of losing Ethereum worth about $77 million.

Calcalist, an Israeli publication, reports that Stakehound has filed a lawsuit against Fireblocks for causing more than $75 million damage in Ether, the second-largest digital property. The prosecution said the crypto security firm was negligent and could not be restored due to a lack of funding.

Stakehound points out that the main cause of this problem is human error. It is alleged that the negligent officer in the Fireblocks firm failed to back up the defendant’s private keys and deleted them “for no apparent reason”. Stakehound claims that this slow management has led to tremendous uncertainty and destruction of funds as the firm is likely to lose 38,178 ETH coins or $70 million at the time of publishing this article.

While moving forward with the investigation Fireblocks argues that it will conduct a comprehensive investigation into the situation and assist “all parties involved in resolving the issue.” Furthermore, the crypto security company refused to take responsibility for ETH’s huge losses because it did not enforce its customer protection guidelines.

While now the question concerning is that are the keys gone forever, while there might be chances of recovery the reason being in January this year,  Ethereum founder Vitalik Buterin spoke about the importance of developing methods that allow customers to retrieve the private keys of their wallets in an emergency.

While also mentioning that It is currently impossible without the help of trusted third parties, Buterin also suggested social security wallets are the solution to the problem.

Social Security wallets act like any normal wallet, unless they add managers to the equation, making it easier for owners to recover their funds or the keys if they lose or forget their keys for any reason.

Thus explaining further Buterin explains and refer to this as a better way of protection:

If a user loses their signature key, then start the social recovery process. The customer can reach out to their parents and ask them to sign a separate transaction to replace the signature pub registered in the wallet agreement with the new one. . It’s easy: they can go to a webpage like and sign in, view the recovery request and sign in, thus confirming and recovering the funds in such similar scenarios.

Read also: Dogecoin: The Creator Gets Back to Crypto After about a Decade

Leave A Reply

Your email address will not be published.