The plaintiff claims losses of $250,000 and is seeking compensatory and punitive damages.

London-based Faes & Company filed a lawsuit against crypto mining company Blockware Solutions LLC on Dec. 17, alleging it misrepresented the capabilities of its miners and lacked proper electrical access to service the machines. Work.

Plaintiffs claim losses of $250,000 and are seeking compensatory and punitive damages.

According to the complaint, in October 2021, the parties struck deals for Faes to purchase Bitcoin miners and related hosting services worth $525,000. As part of the deal, Blockware would host Fae-Miner in one of its server facilities, which it would own and operate for a monthly hosting fee and electricity costs.

See Also: Public Bitcoin Mining Companies Struggling With $4 Billion In Collective Debt

However, the plaintiff alleges that at the time of the agreement, Blockware “actually did not own or operate any facility to house miners, nor could it reliably do so.” He also remarked:

“Also, since Blockware had access to third-party facilities to host and manage miners, the facilities lacked reliable power supply (probably due to a restrictive contractual arrangement with their electricity provider), so miners’ operations experienced regular disruptions or “limitations.” As a result, under the direction and control of Blockware, Fae miners have experienced prolonged downtime and operational disruptions due to lack of food, resulting in significant loss of income.
Faes also noted in the complaint that the machines were scheduled to be delivered and housed at Blockware’s facilities in January, when one bitcoin (BTC) was worth more than $45,000. However, the platforms only went live in April. The suit also noted that:

advertising
How retail crypto traders got a 350.68% chance of BONK in 4 days >>>
“The downtime issues started about two days after Faes miners first went live and continued throughout 2022, resulting in numerous Faes complaints and support tickets. Despite these issues, Blockware hosts and maintains a public “status page” that shows the continued high availability of its facilities, including the Pennsylvania facility that housed the fae miners, which has maintained a consistent 100% uptime for the last 90 days indicates.
Despite the reported “100 percent uptime,” a look at the incident history shows “approximately 50 days of continuous power outages” at the Pennsylvania facility in September and October, the complaint says.

Blockware Solutions did not immediately respond to Cointelegraphs requests for comment.

Bitcoin mining companies have been hit hard by the crypto winter and a surge in energy costs. According to the Hashrate Index, the top 10 Bitcoin mining borrowers cumulatively owe about $2.6 billion

Source: CoinTelegraph

LEAVE A REPLY