1. Compass Mining is facing a lawsuit from customers who allege that the company lost their Bitcoin mining machines in a deal with Bit River.
2. The lawsuit is seeking more than $2 million in damages for failing to return the machines after the termination of the business relationship.
3. The court document claims that Compass Mining did not disclose its ‘middleman’ status to Bit River and that the plaintiffs believe Bit River assumed that Compass owned the mining machines.
Compass Mining, a cryptocurrency mining firm, is currently facing a lawsuit from customers who allege that the company failed to return their Bitcoin mining machines. The aggrieved customers are seeking more than $2 million in damages after Compass Mining severed ties with Russian hosting firm Bit River.
The lawsuit, which was filed on January 17th with the United States District Court for The Southern District of Florida, alleges that Compass Mining fraudulently failed to disclose its ‘middleman’ status to Bit River. Plaintiffs believe that Bit River may have assumed that Compass owned the mining machines, leading to the loss of the machines.
The court document states that Compass issued a notice last April of its business termination with Bit River. The mining company cited the sanctions imposed by the United States government on Russia as the reason for the termination. However, according to the lawsuit, Compass failed to return the mining machines to the customers.
The lawsuit claims that Compass Mining had a contractual obligation to return the mining machines to the customers but failed to do so. The aggrieved customers believe that Compass Mining was negligent in its duties, and as a result, they are now seeking more than $2 million in damages.
The lawsuit against Compass Mining is a reminder to all cryptocurrency firms of the importance of fulfilling contractual obligations. It also serves as a warning to all customers to be cautious when entering into business relationships with companies.