Introduction to the Lawsuit
In a dramatic turn of events, crypto mining heavyweight Bitmain has found itself tangled in a class action lawsuit seeking $5 million. The allegations claim that the company mined cryptocurrency for its own profit using customers’ devices without their consent. Our lead plaintiff, Gor Gevorkyan from Los Angeles County, isn’t pulling any punches with this accusation.
What’s Got Everyone Buzzing?
According to court documents filed in the North District Court of California, Gevorkyan asserts that Bitmain’s ASIC (Application-Specific Integrated Circuit) devices were set up to run on high-power mode during their long initialization period. This means, essentially, your electricity was generating profits for Bitmain before you even got to that sweet mining moment of configuration. Talk about a shocking twist!
The Initialization Dilemma
Have you ever tried to get a gadget working, only to lose hours of your life to setup frustration? That’s exactly what Gevorkyan claims happened when he invested in the S9 Antminer back in January 2018. He described this arduous ‘initialization phase’ where his devices ran amok at full power, using up all his power supply like a toddler on a sugar rush. And guess who pocketed the crypto gains? That’s right—Bitmain.
Claims of Unfair Business Practices
In the lawsuit, Gevorkyan doesn’t hold back. He accuses Bitmain of engaging in “unfair business practices” and argues that the company has unjustly enriched itself at the expense of miners who thought they were just buying hardware. Instead, it seems they may have inadvertently joined an intergalactic crypto-friendship club—only to find out they weren’t on the guest list.
Setting the Stage for a Potential Settlement
Gevorkyan’s legal representative isn’t just looking for a slap on the wrist; they’re aiming for a serious payout to reimburse miners who have been similarly affected. The aim? Over $5 million to cover ‘ascertainable and out-of-pocket losses.’ Now that’s some hefty cash for what appears to be a classic case of biting the hand that feeds!
Impact on Bitmain’s Current Endeavors
As Bitmain gears up for an Initial Public Offering projected to raise up to $18 billion, one can’t help but wonder how this lawsuit will shape investor confidence. With China imposing sanctions on goods, and the company’s dependency on foreign sales (which made up over half of its revenue in 2017), this lawsuit couldn’t have come at a worse time.
The Bitter Sweetness of the BCH Hard Fork
Adding more salt to the wound, Bitmain has been left spinning in the aftermath of the Bitcoin Cash hard fork, where it had already allocated substantial funds. The denial from potential investment partners, like SoftBank and Tencent, casts an even darker shadow over this once-mighty titan of crypto mining. Looks like the chips might be down for Bitmain after all!
+ There are no comments
Add yours