The mining company is accused of not being able to return equipment purchased by customers, which is now located in Russia.
It is reported that the clients of the Texas mining company Compass Mining sued the company, demanding a refund of $ 2 million for unreturned equipment. The January 17 lawsuit alleges that the firm is suspected of fraud because it failed to warn the Russian company Bit River that it was only an intermediary and the actual owners of the equipment are the ones who are now the plaintiffs.
Compass Mining ended its partnership with Bit River due to sanctions fears back in January 2022. The lawsuit alleges that the company did not even try to return the equipment or exchange it for assets. The plaintiffs insist that Compass Mining is obliged to return the miners of its customers.
In response, company representatives have already stated that they cannot conduct any business with Bit River. The Russian company told the plaintiffs that under the contract all equipment belongs to Compass and, accordingly, all issues must be resolved with the Texas company.
The authors of the lawsuit claim that Compass’s promise of uptime of 95% of machines was false – in reality it did not exceed 50-60%. Some claim that they were completely offline for several weeks.
Earlier, Compass Mining stopped working in Georgia due to internal problems. Customers were promised to be transferred to equipment located in the United States.
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.