A German phone repair and insurance entity, Einhaus Group, has declared bankruptcy after paying a ransom of €200,000 (about $230,000) to hackers. This decision has devastatingly affected the company, which previously reported revenues of 70 million euros.

Background
In 2023, the firm faced a cyberattack from the hacking group Royal, which left all systems encrypted and inaccessible. They warned the company that further details would be available on the dark web. After paying the ransom, Einhaus had to reduce its workforce from 170 employees down to just eight due to the financial strain.

“We’ve hacked you. All further information can be found on the dark web.”

Following the attack, Einhaus experienced significant damage, with estimates reaching into the mid-seven-figure range, and prolonged downtime affected its daily operations. Furthermore, 11% of the company’s data was reportedly leaked on an online portal.

The ongoing investigations have led to the apprehension of three suspects associated with the hacking. They stated that cryptocurrencies were confiscated but have not yet been returned to Einhaus, complicating any recovery efforts.

By 2024, the firm was forced to sell its premises, and it is now undergoing insolvency proceedings. Wilhelm Einhaus, 72 years old, who has been in business for 53 years, expressed intentions to re-establish himself despite the challenging circumstances.