A hosting provider, Old Const, has filed a lawsuit against Bitmain, the world’s largest producer of bitcoin mining equipment, alleging Bitmain inappropriately terminated the agreement between the firms.
Old Const, which bought Bitmain’s “HASH Super Computing Server” and agreed to provide hosting services, claims Bitmain “fabricated purported breaches in order to terminate the agreement immediately.”
In addition, Old Const claims Bitmain threatened to seek a seizure order, called a “writ of replevin,” outside of Texas jurisdiction. By doing this, it claims Bitmain violated the Hosting Services Agreement that the two firms entered into in November 2024, which required any legal dispute to be settled in Texas.
Old Const’s lawsuit seeks a Temporary Restraining Order and an injunction ordered by the court that would prevent Bitmain from obtaining any seizure order from a court outside of Texas.
Otherwise, Old Const says Bitmain will “unlawfully” try and take its “essential” mining equipment away unless an injunction is granted.
Read more: New research suggests Bitcoin mining centralized around Bitmain
The lawsuit also seeks any damages that may be incurred, including legal costs, and for any “non-injunctive” disputes to be settled out of court via arbitration.
Bitmain was founded by the billionaire Jihan Wu and is the world’s largest producer of crypto mining equipment. According to Bloomberg, it planned to expand its US operations and open up a facility in either Texas or Florida during Trump’s newfound bitcoin mining push this year.
In July 2024, Bitmain sued another hosting partner called JWKJ Technologies. It accused the firm of violating its contract by failing to keep its miners working for 95% of the time and also by redirecting mining power for its own profits.
When Bitmain tried to get its equipment back, JWKJ refused, and Bitmain accused the firm of unlawfully detaining its $15 million worth of mining equipment.
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Source: https://protos.com/lawsuit-alleges-that-bitmain-faked-contract-breaches/
