German phone repair biz collapses following 2023 ransomware attack

The founder of a German mobile phone repair and insurance biz has begun insolvency proceedings for some operations in his company after struggling financially following a costly ransomware attack in 2023.

Wilhelm Einhaus, who heads up Hamm-based Einhaus Group, confirmed the news to regional outlet WA late last week.

The managing director said the company's financial failings were due to the public prosecutor's office refusing to return the stolen cryptocurrency tokens it paid the attackers.

Reportedly in the high six-figure range, authorities seized the ransom payment as part of their investigation into the cybercriminals, but the assets were never returned, Einhaus claimed.

"The fact that we, as the proven victims, are not recouping the extorted funds, even though they have been confiscated, has derailed our restructuring efforts," he said (machine translation).

Einhaus Group comprises 13 companies that Einhaus founded in the early 2000s. Three of these businesses have ...