A federal court upheld an arbitration award for DigitalOcean LLC in a dispute arising from a hack of its cloud-storage systems that caused a customer to lose $6.87 million in cryptocurrency.
An arbitrator with the American Arbitration Association didn’t disregard the law in ruling that DigitalOcean wasn’t liable for the losses of plaintiff Guido Malato when a cybercriminal stole the Bitcoin he maintained on the company’s network, Judge Katherine P. Failla of the US District Court for the Southern District of New York said Wednesday.
The arbitrator properly relied on “shared responsibility provisions” in the DigitalOcean terms of service in ...
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