The Fallout of a Flopped Partnership
A group of disgruntled customers is trying to take Compass Mining to court, asking for a cool $2 million after claiming the company left them high and dry when it cut ties with its Russian hosting buddy, Bit River. Unfortunately for them, their case has already been tossed out just a day after it hit the courts, but don’t grab the popcorn just yet—the judge has given them a chance to amend their complaint.
Why the Lawyers Got Involved
The original beef started when Compass Mining partnered with Bit River to host cryptocurrency mining machines in Russia. The idea was to give users access to top-notch, cost-effective, and environmentally friendly mining options. But in April 2022, after sanctions were enforced due to international tensions (thanks, Executive Order 14024), Compass pulled the plug on the partnership, leaving many customers wondering where their Bitcoin machines had disappeared to.
Claims of Miscommunication
According to the complaint filed in the United States District Court of Southern Florida, Compass allegedly claimed that returning the machines would violate sanctions. The customers, however, aren’t buying it, arguing that Compass should have ensured their machines were returned, given they own them. In the courtroom drama, they pointed fingers at both Compass and Bit River, stating that both parties were playing a game of ‘not it’—with nobody taking responsibility.
False Promises and Service Failures
Adding fuel to the fire, the plaintiffs have argued that Compass Mining misrepresented its uptime guarantee. While Compass touted a “95% uptime,” customers claim the reality was a far more dismal “50-60%,” leaving many miners offline for extended periods. Talk about a bait and switch!
The Court’s Quick Dismissal
In a blink-and-you’ll-miss-it move, Judge Raag Singhal dismissed the case due to numerous issues, particularly the representation of the plaintiffs. The judge noted that Jian Huang, a pro se litigator, was attempting to represent others without the necessary permission. Additionally, the complaint didn’t sufficiently clarify the parties involved, which is crucial for the court’s jurisdiction.
Yes, reading the fine print is important—even in court!
Next Steps for the Plaintiffs
While the customers may have been dealt a swift legal blow, they’ve got until February 3, 2023, to file an amended complaint with all the proper signatures and legal representation for businesses. If they fail to meet these requirements, their case could be dismissed for good. Talk about putting the pressure on!
As for Compass Mining, they’re confident that the complaint lacks merit and are investigating the claims further. Their spokesperson stated, “We strongly believe that the filing has no merit and is missing key elements. We are confident that this spurious filing will not be successful.”
