Compass Mining sued for over $2 million for alleged fraud by CoinEdition


Compass Mining sued for over $2 million for alleged fraud
  • Crypto mining company Compass Mining has been sued by its clients for alleged fraud.
  • The customers demanded more than US$2 million due to the mining company’s failure to return their equipment.
  • This issue stems from Compass Mining’s pending contract with Russian host company Bit River.

Popular crypto-mining company Compass Mining has been accused of fraud by its clients, who are now suing the company for more than $2 million. The lawsuit revolves around the mining company’s failure to return its customers’ bitcoin mining equipment.

According to a filing in the US District Court for the Southern District of Florida, the lawsuit stems from a contract between Compass Mining and Bit River, a Russian hosting company. In April 2022, the US Office of Foreign Assets Control (OFAC) imposed sanctions on Bit River.

The sanctions prompted Compass Mining to suspend its contract with Bit River, since its hosting facility is located inside Russia. However, the clients argued in the filing that the OFAC order does not prohibit repossession or requesting the return of property under the temporary control of a sanctioned party.

According to them, the mining company stated that there was an inapplicable penalty for withholding their mining equipment. When contacted by customers, Compass Mining representatives were unable to provide a satisfactory solution to their customers…

The post appeared after Compass Mining was sued for more than $2 million for alleged first coin issuance fraud.

See the original on CoinEdition



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