Compass Mining’s clients filed a lawsuit against the mining company demanding a refund of $2 million. They accuse Compass Mining of fraud and breach of contract due to the fact that the company stopped working with BitRiver, which fell under US sanctions.
According to the lawsuit, filed on January 17, Compass Mining did not warn the Russian company Bit River that it was only an intermediary, while the real owners of the equipment were the plaintiffs.
Compass Mining has terminated its partnership with BitRiver due to sanctions. At the same time, the plaintiffs allege that the company did not attempt to return the equipment or exchange it for assets. Customers insist that the equipment must be returned to the true owners.
The plaintiffs allege that US Treasury sanctions “do not prohibit US entities or individuals from curtailing or abandoning existing investments in a project or operation in the Russian Federation.”
The application says that the cost of mining equipment is more than $1.75 million.
BitRiver, an operator of cryptocurrency mining data centers that opened the largest Russian mining farm in the Krasnoyarsk Territory in 2019, was included in the sanctions list in April 2022. The list includes “organizations and individuals involved in attempts to evade sanctions against Russia imposed by the United States and its partners.”
Special attention in the statement was given to the fight against crypto-currency enterprises: “By operating huge server farms that sell virtual currency mining capacities internationally, these companies are helping Russia monetize its natural resources. The United States is committed to ensuring that no asset, no matter how complex, becomes a mechanism for the Putin regime to compensate for the impact of sanctions.”
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