{"id":540865,"date":"2023-01-19T13:43:21","date_gmt":"2023-01-19T10:43:21","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/compass-mining-sued-for-losing-bitcoin-mining-machines-bought-by-customers\/"},"modified":"2023-01-19T13:43:21","modified_gmt":"2023-01-19T10:43:21","slug":"compass-mining-sued-for-losing-bitcoin-mining-machines-bought-by-customers","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/compass-mining-sued-for-losing-bitcoin-mining-machines-bought-by-customers\/","title":{"rendered":"# Compass Mining sued for losing Bitcoin mining machines bought by customers"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a283eba71ab5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a283eba71ab5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/compass-mining-sued-for-losing-bitcoin-mining-machines-bought-by-customers\/#%E2%80%9D_Compass_Mining_sued_for_losing_Bitcoin_mining_machines_bought_by_customers_%E2%80%9C\" >&#8221; Compass Mining sued for losing Bitcoin mining machines bought by customers  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Compass_Mining_sued_for_losing_Bitcoin_mining_machines_bought_by_customers_%E2%80%9C\"><\/span>&#8221; Compass Mining sued for losing Bitcoin mining machines bought by customers  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvOWU2MjJhMjktYjhhYi00NDFlLThmYzctNDQ5NmRmMjNkNjBiLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>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-<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>licable United States sanction as the reason.<\/p>\n<p>According to a court document <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.flsd.626919\/gov.uscourts.flsd.626919.1.0.pdf\">filed<\/a> 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 that its customers entrusted the company with to host at Bit River\u2019s facilities in Russia.<\/p>\n<p>However, it was stated that it is \u201cfalse\u201d that the return of the mining machines would be in violation of 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<blockquote><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><\/blockquote>\n<p>The court document noted that Compass should have disclosed to Bit River they are \u201csimply the middleman\u201d and the machines were actually 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><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/compass-mining-sued-for-losing-bitcoin-mining-machines-bought-by-customers\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Compass Mining sued for losing Bitcoin mining machines bought by customers &#8220; 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&#8230;<\/p>\n","protected":false},"author":1,"featured_media":540866,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/9e622a29-b8ab-441e-8fc7-4496df23d60b.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,74863,75042,74889,117,55229,70934,4975,71523],"class_list":["post-540865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-cryptocurrencies","tag-mining","tag-payments","tag-business","tag-law","tag-regulation","tag-russia","tag-sanctions"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=540865"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/540866"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=540865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=540865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=540865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}