{"id":9860,"date":"2023-01-19T13:53:47","date_gmt":"2023-01-19T13:53:47","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=9860"},"modified":"2023-01-19T13:53:48","modified_gmt":"2023-01-19T13:53:48","slug":"compass-mining-sued-for-losing-bitcoin-mining-machines-bought-by-customers","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9860","title":{"rendered":"Compass Mining sued for losing Bitcoin mining machines bought by customers"},"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>Customers are suing Compass Mining for over $2 million, alleging fraud, after the company cut ties with Russian hosting company Bit River and failed to return customers\u2019 Bitcoin machines, citing a non-applicable United States sanction as the reason.<\/p>\n<p>According to a court document filed on Jan. 17, Compass Mining issued a notice in April 2022 that it has terminated its \u201crelationships and dealings with Bit River\u201d due to the sanctions imposed by Executive Order 14024.<\/p>\n<p>It is alleged that Compass \u201cdid not offer\u201d to return or even retrieve the assets its customers entrusted the company with, hosted at Bit River\u2019s facilities in Russia.<\/p>\n<p>However, it was stated that it is \u201cfalse\u201d that the mining machines&#8217; return would violate Executive Order 14024, which prohibits dealings with sanctioned entities.<\/p>\n<p>The court document noted that Compass has \u201cboth the right and obligation to effect the return of its customers\u2019 miners.\u201d <\/p>\n<p>Compass representatives met customers\u2019 concerns with hostility, saying that it is \u201cunable to conduct or even facilitate\u201d any business dealings with Bit River.<\/p>\n<p>When its customers had no option but to contact Bit River, the Russian firm allegedly pointed them back to Compass. Bit River representatives responded to those that reached out:<\/p>\n<p>\u201cFrom a legal point of view, Bit River\u2019s contract is with Compass, and all equipment is owned by Compass. Thus you must address all questions directly with Compass.\u201d<\/p>\n<p>The court document noted that Compass should have disclosed to Bit River that they were \u201csimply the middleman\u201d and that the machines were paid for and owned by the plaintiffs themselves.<\/p>\n<p>The partnership with Bit River was originally intended to enable Compass\u2019 customers to host their machines at Bit River\u2019s facilities to take advantage of \u201centerprise-grade, low-cost and low-carbon cryptocurrency mining facilities in Russia.\u201d<\/p>\n<p> <strong><em>Related: <\/em><\/strong><strong><em>Only for foreign trade: Bank of Russia stands against free crypto investment<\/em><\/strong><\/p>\n<p>The court document further stated that Compass\u2019 promise of its machines&#8217; \u201cuptime of 95%\u201d was inaccurate, stating that it was actually \u201ccloser to 50-60%.\u201d In some instances, miners were not online at all for weeks or months at a time.<\/p>\n<p>In July 2022, Compass was the first mining firm to announce job cuts amid the ongoing crypto winter. The firm laid off 15% of its employees while top executives and staff took major pay cuts.<\/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\/compass-mining-sued-for-losing-bitcoin-mining-machines-bought-by-customers\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customers are suing Compass Mining for over $2 million, alleging fraud, after the company cut ties with Russian hosting company Bit River and failed to return customers\u2019 Bitcoin machines, citing a non-applicable United States sanction as the reason. According to a court document filed on Jan. 17, Compass Mining issued a notice in April 2022 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-9860","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\/9860","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=9860"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9860\/revisions"}],"predecessor-version":[{"id":9862,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9860\/revisions\/9862"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9861"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}