Death threats and extortion: DraftKings employees sued over alleged data leak

Garance Limouzy June 27, 2024

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Death threats and extortion: DraftKings employees sued over alleged data leak

Several DraftKings?employees are?facing serious allegations after a New York resident, identified in court documents as “John Doe”, claimed his personal information was leaked, resulting in a distressing assault and extortion attempt. This legal dispute has garnered significant public attention.

The incident reportedly began in March 2023 when John Doe, residing in Long Island City, was approached on a subway platform by an assailant who aggressively demanded $500,000. It’s alleged that the assailant had been waiting for John Doe outside his apartment for several hours before confronting him at the subway platform.

The lawsuit claims this demand was linked to Gadoon “Spanky” Kyrollos, a prominent figure in sports betting.

John Doe asserts that his sensitive details were obtained through undisclosed means involving employees of DraftKings. According to the lawsuit, DraftKings is accused of exposing John Doe’s personal information, including his address, betting history, and financial records, to Kyrollos and potentially others. The plaintiff claims this breach made him vulnerable to threats and physical harm, culminating in a terrifying assault that has left him living in constant fear for his safety.

DraftKings denies

DraftKings has vehemently denied these accusations, stating there is no evidence that any of its employees leaked confidential customer information. The company’s response challenges the allegations as unsubstantiated. DraftKings also reiterated its commitment to customer security and privacy.

A DraftKings spokesman told Sports Handle: “In the complaint, the plaintiff does not identify any DraftKings employee, but rather alleges on ‘information and belief’ that an unknown and unidentified DraftKings employee provided private account information to ‘Spanky’ and to additional unnamed third parties. DraftKings has found no evidence of anyone at DraftKings providing plaintiff’s information to a third-party, and DraftKings denies acknowledging any such “security breach”.”

Spanky’s answer

Spanky Kyrollos responded to the plaintiff’s claims in a social media post. According to Spanky, the anonymous plaintiff and his attorney, Steve Jacobs, are one and the same person.

Spanky claims he had a contentious partnership with Steve Jacobs. He explained that, due to being banned from betting by certain operators, including DraftKings, he relies on bettors like Steve Jacobs to place bets. Despite their allegedly successful collaboration, Spanky claims that Steve Jacobs never shared any of the earnings with him.

My statement:
Let’s address Mr. ‘John Doe’ aka Steve Jacobs (Yes, you read that right, the plaintiff and the plaintiff’s attorney are the same person!)

Plaintiff / plaintiff's attorney Steve Jacobs is also a Senior Attorney who works at Herbert Smith Freehills Law Firm in New… pic.twitter.com/lzZqxfbJwQ
— spanky (@spanky) June 26, 2024

Data safety and corporate responsibility

This legal battle is linked to broader concerns about the security of personal data in the iGaming industry. With more states legalising and regulating sports gambling, protecting customer information from exploitation has become increasingly crucial. The DraftKings case, regardless of the veracity of the allegations, serves as a reminder of the potential risks individuals face when their information is mishandled.

As the legal proceedings continue, they are likely to spark discussions about regulatory frameworks and corporate responsibilities when it comes to consumer protection and data security.

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