Project Spokane, a Montana-based mining company, is suing the Electric Power Company owner, Energy Keepers Inc. For $ 3.7 million in unpaid electricity bills, she is not liable for debt.
On December 14, Project Spokane asked a federal judge in Montana to dismiss the suit, stating that Hyperblock LLC, which bought most of the mining company’s assets in 2018, is responsible for paying off the debt.
However, Hyperblock filed for bankruptcy in March following the COVID-19 pandemic. Spokane and Hyperblock have a common owner.
A lawsuit filed by Energy Keepers or EKI in May alleges that Project Spokane used an agreement with Hyperblock LLC to conspire against paying the electricity supplier for the electricity it uses.
The complaint states that Hyperblock acquired Project Spokane’s assets for approximately $ 66 million despite the company having $ 11 million in assets and $ 6.6 million in liabilities, claiming the payment was overstated given the state of the books. miners.
The Spokane project argued that the terms of the Hyperblock agreement explicitly transfer responsibility for the electricity bill to Hyperblock. Defendants noted that EKI returned the $ 1 million bond and provided the company with an unsecured $ 5 million credit line, claiming that EKI established the Hyperblock was legitimate following extensive interactions with the company and its investigations:
“EKI agreed with open eyes to terminate the contracts. “EKI now claims that the defendants used Hyper LLC to abuse the company’s model and commit fraud, which is completely misleading and false given that EKI was well aware of these facts,” the defendants said.
“There is simply no evidence that PS or Walsh used Hyper LLC disguises to evade the public interest, justify misconduct, commit fraud, or defend against crime.”
The drop in bitcoin prices in the middle of the Black Thursday crash in March was cited as the reason Hyperblock did not continue to pay bills – causing EKI to stop supplying power to Hyperblock on May 14. Hyperblock filed for bankruptcy a day later.