Compass Mining, a manufacturer of bitcoin mining equipment, has prevailed in a legal dispute with hosting company Dynamics Mining and received around $1.5 million in the suit.
Compass’ hosting relationship was canceled by Kentucky-based Dynamics in June when it was revealed that Compass had not paid the hosting and power fees associated with a facility in Maine.
Dynamics’ assertions, according to Compass, are “totally false, without any factual evidence, and generate additional harm to Compass,” according to the complaint. Additionally, the firm claimed Dynamics Mining was “hostage-taking” its equipment.
A Compass official told Decrypt today, after the Thursday ruling was made public, that the “situation with Dynamics Mining is presently not unusual” in the sector. We are focused on locating top-notch suppliers and expanding in a sustainable manner, they stated.
On Thursday, a court decided in Compass’ favor and issued a default judgment against Dynamics for slightly over $1.47 million, plus fees and post-judgment interest. It is “not apparent,” according to Compass in a statement, if it will be able to collect the judgment against Dynamics.
Compass co-CEO Thomas Heller stated in a statement that “Dynamics Mining infringed the rights of both Compass Mining and our customers, and we’re happy the U.S. judicial system has reached a fair conclusion.”
An “appeal is now in the process,” Dynamics, a provider of 100% renewable energy mining facilities, said, blaming documentation that “was submitted wrongly.”
The Dynamics official also said that Compass was “preemptively” disseminating the word of the court decision in an effort to “enhance their poor corporate image.”
Whitney “Whit” Gibbs, the company’s CEO and co-founder, as well as chief financial officer Jodie Fisher, left Compass in June not long after the Dynamics disagreement came to light.
The price of bitcoin has fallen dramatically this year due to a vicious continuous bear market, which has made things tough for the businesses that mine bitcoins. To enhance liquidity, several businesses had to sell their bitcoin.
