A court order which dismissed the suit between BitPay and Massachusetts Bay Insurance Company, after the company lost $1.8m during a phishing attack.

BitPay lost approximately $1.8m in bitcoin during a phishing attack that targeted the company’s leadership team in December 2014. BitPay's management team went on to authorize three separate bitcoin transactions. This included transaction from a company account on a European bitcoin exchange called Bitstamp.

During the phishing incident, the unknown attacker triggered payments from BitPay by posing as BTC Media CEO David Bailey, whose computer had been taken over and hacked. Soon after the incident, BitPay filed a claim on the losses with the insurer. During that time, BitPay demanded for a payout amount of $950,000, plus court fees and unspecified damages.

The attack demonstrated the risks which companies handling digital currencies face, from such attacks. It also demonstrated the cost of fraud resulting from the failure of operational policies to prevent such intrusions. These problems have however apparently come to a conclusion with news of the settlement.

The court order did not disclose the exact terms of the settlement. Founded in the year 2011, BitPay currently is the largest bitcoin payment processor in the world, serving more than 60,000 merchants on six continents. It aims to offer the world’s fastest and safest bitcoin payment option.