August 12, 2021

Spanish Bitcoin developer Bitgo has been ordered by the Spanish court to pay more than 5 million euros ($5.5 million) in damages to its former employee after it was accused of hacking the blockchain and selling stolen bitcoins.

The Spanish government also ordered Bitgo to pay a compensation of 1 million euros to the victims of the hack, including employees, said Spanish newspaper El Mundo.

The case against Bitgo is the latest in a series of cases against bitcoin companies across Europe, with Spain’s anti-money laundering agency (AMBIO) also investigating Bitgo.

The lawsuit, filed on February 20, accuses Bitgo of being part of the criminal activity of an international crime gang, known as “The Bitcoin Mafia”.

Bitgo was one of the first bitcoin startups to take on the cryptocurrency market in Spain, but in the last few months, it has been under investigation by the authorities, with prosecutors also looking into the group.

In a statement, Bitgo said it has “full faith” in Spain’s legal process and is “confident that we will prevail in the Spanish courts”.

The company has been trying to settle the case with the court, which ordered the payment of the damages.

The payments will be made to the plaintiffs, but Bitgo’s legal team has already indicated that it would appeal.

Bitgo has previously denied any involvement in the theft and said the case was brought by a former employee of the company who was “furious” about the hack.

The company had also been investigating the hack in 2013, but the Spanish investigation only became public in March this year.

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