The Allegations Against Blockware Solutions
London-based Faes & Company is taking a bold step by filing a lawsuit against Blockware Solutions LLC, claiming misrepresentation of their miners’ capabilities and inadequate power access. They are aiming to recoup losses of $250,000 because, as the complaint states, the performance of their Bitcoin mining operations was far from the promised results.
The Agreement That Went Awry
In October 2021, both parties entered into an agreement that involved Faes purchasing $525,000 worth of Bitcoin miners along with related hosting services. Blockware had promised to host these miners at one of their facilities, charging a monthly fee that seemed reasonable at that time.
Promises Made, Promises Broken
However, the complaint raises serious red flags. Claiming that Blockware didn’t actually own or operate the facilities required to host the miners, Faes alleges that the crypto company was not capable of reliably hosting any equipment. If that wasn’t enough, they also pointed out that even if Blockware had access to third-party facilities, the power supply was, in layman’s terms, as reliable as a chocolate teapot!
Downtime Drama
What really ruffled Faes’ feathers was the fact that their miners experienced significant downtime right from the start. Machines ordered for delivery in January missed the Bitcoin boom when prices were over $45,000, with the miners not online until April. During 2022, the complaints from Faes about the interruptions seemed to stack up as high as Bitcoin’s price once did!
Fake Uptime and Real Losses
Despite the display of a shiny 100% uptime on Blockware’s status page, the evidence told a different story. According to the investment bank’s complaints, there were about 50 days of significant power curtailment just in September and October alone. It’s as if Blockware was playing a game of hide and seek with the truth!
The Current Landscape for Bitcoin Miners
The lawsuit against Blockware comes at a time when Bitcoin mining companies are facing a tough environment. The crypto winter has left many entities in debt, collectively owing approximately $2.6 billion. Faes & Company isn’t the only one riding the waves of high energy costs and operational woes, but they might just be the most vocal about their struggles.
Conclusion
While Blockware hasn’t publicly responded yet, the court will need to sort through the claims and counterclaims. As the crypto world continues to sway through highs and lows, lawsuits like these might just become the new normal. And who knows? Perhaps we’ll see updates at the top of the hour, or more realistically, when Blockware decides to show up!
