{"id":11967,"date":"2023-05-14T03:15:49","date_gmt":"2023-05-14T03:15:49","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=11967"},"modified":"2023-05-14T03:15:50","modified_gmt":"2023-05-14T03:15:50","slug":"btc-miner-rhodium-faces-lawsuit-over-an-alleged-26m-in-unpaid-fees-report","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11967","title":{"rendered":"BTC miner Rhodium faces lawsuit over an alleged $26M in unpaid fees: Report"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Crypto mining firm Riot Platforms \u2013 formerly Riot Blockchain \u2013 is seeking to recover \u201cmore than $26 million\u201d in alleged unpaid fees from Texas-based Bitcoin (BTC) miner, Rhodian Enterprises, according to its Q1 2023 report.<\/p>\n<p>Published on May 10, Riot&#8217;s Q1 2023 financial\u00a0report\u00a0stated that Whinstone \u2013 a wholly owned subsidiary of Riot \u2013 has filed a petition against Rhodium Enterprises on May 3, alleging a breach of contract for failing to pay \u201ccertain hosting and service fees under agreements.&#8221;<\/p>\n<p>Riot seeks to recover \u201cmore than $26 million,\u201d plus legal fees and other expenses that are incurred during the legal proceedings, as outlined in the report.<\/p>\n<p>It was further requested that \u201ccertain hosting agreements\u201d with Rhodium are terminated and \u201cthat no power credits are owed to Rhodium.\u201d<\/p>\n<p><em>Extract of Riot Platforms quarterly report for the period ended March 31. Source: SEC<\/em><\/p>\n<p>Although the disclosure of unpaid fees were stated, Riot was transparent with stakeholders, acknowledging that \u201cthe likelihood\u201d of recovering the funds at this stage is uncertain. It noted:<\/p>\n<p>\u201cBecause this litigation is still at this early stage, we cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any.\u201d<\/p>\n<p>It was reported that Rhodium was served on May 8, and have until May 30 to respond.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Complaint filed against Compass Mining for losing BTC mining machines hits snag<\/em><\/strong><\/p>\n<p>The report also emphasized Riot\u2019s growth in mining operations, stating that it had mined \u201c2,115 Bitcoins\u201d (BTC), representing an increase of 50.5% from the number of Bitcoins mined during the first quarter of 2022.<\/p>\n<p>Furthermore, stakeholders were provided reassurance in the report that Riot does not have any affiliations with the banks that have experienced collapses in recent times. It noted:<\/p>\n<p>\u201cWe did not have any banking relationships with Silicon Valley Bank, Silvergate Bank, or First Republic Bank, and currently hold our cash and cash equivalents at multiple banking institutions.<\/p>\n<p>Riot anticipates that Bitcoin mining companies will continue to experience significant challenges due to the significant price decline of Bitcoin and \u201cother national and global macroeconomic factors,\u201d as the industry saw in 2022.<\/p>\n<p>It was stated that given Riot\u2019s &#8220;relative position&#8221; in the industry, \u201cliquidity and absence of long-term debt,\u201d it is positioned to \u201cbenefit from such consolidation.\u201d<\/p>\n<p><strong><em>Magazine: <\/em><\/strong><strong><em>3AC cooks up a storm, Bitcoin miner surges 360%, Bruce Lee NFTs dive: Asia Express<\/em><\/strong><\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/btc-miner-rhodium-lawsuit-alleged-26-m-in-unpaid-fees\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto mining firm Riot Platforms \u2013 formerly Riot Blockchain \u2013 is seeking to recover \u201cmore than $26 million\u201d in alleged unpaid fees from Texas-based Bitcoin (BTC) miner, Rhodian Enterprises, according to its Q1 2023 report. Published on May 10, Riot&#8217;s Q1 2023 financial\u00a0report\u00a0stated that Whinstone \u2013 a wholly owned subsidiary of Riot \u2013 has filed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11968,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-11967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11967"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11967\/revisions"}],"predecessor-version":[{"id":11969,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11967\/revisions\/11969"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11968"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}