On September 15, 2015, BitPay filed suit against its insurer, Massachusetts Bay Insurance Company ("MBIC") to recover amounts owed under a commercial crime policy issued by MBIC to BitPay as well as penalties for MBIC's bad faith denial of the amounts owed to BitPay under the policy.
BitPay cannot discuss the pending litigation other than to say the amounts owed relate to a theft incident which occurred in December of 2014, nearly one year ago. This was an isolated incident, and none of BitPay's customers, affiliates or merchants lost any funds. The only victim of the theft was BitPay. All merchant funds were secure, and there were no disruptions to BitPay's payment services at any time. Additionally, advances in bitcoin cybersecurity over the last year allow BitPay to further protect funds and better serve merchants and bitcoin users.