$11.7 Million Bitcoin Hacking Case Against BitPay Thrown Out Over Statute of Limitations Issue

On Monday, July 15, 2024, the United States District Court for the Northern District of Georgia, Atlanta Division granted a motion to dismiss a negligence lawsuit related to the alleged theft of bitcoin from an online payment platform.

The plaintiff in the case was Hugo Soares, who claimed that around $11.7 million worth of bitcoin he owned was stolen from his account on the BitPay cryptocurrency payment platform on November 22, 2019. Soares argued that BitPay did not exercise due care in developing and maintaining its service, allowing his account to be hacked. However, BitPay contended that Soares’s lawsuit against the company was not filed within the statute of limitations.

Under Georgia law, negligence claims must typically be brought within four years of when the alleged injury occurred. Soares filed his complaint against BitPay on November 16, 2023, just before this deadline related to the reported theft in November 2019. However, BitPay was not served notice of the lawsuit until January 11, 2024, over a month after the filing. The company argued this delayed notification meant the statute of limitations was not properly tolled.

In his ruling, District Judge Thomas Thrash agreed with BitPay’s argument. Georgia courts require plaintiffs to demonstrate “reasonable and diligent” efforts to serve a defendant in a timely manner in order to toll the statute. However, Soares did not justify the nearly 60-day delay in serving BitPay and failing to meet this standard. While Soares attempted to argue his damages may have extended beyond just the theft date, Judge Thrash said the alleged injury clearly accrued on November 22, 2019 based on the facts in the original complaint.

As Soares did not show the required diligence in serving BitPay notice of the suit, Judge Thrash granted the company’s motion to dismiss the negligence claim, finding it was not filed before the four-year statute of limitations expired. Soares has two weeks to potentially file a motion to amend his complaint, though if he fails to do so, the case will be fully closed.

Please contact BlockTribune for access to a copy of this filing.