Compass Mining Wins $1.5M in Lawsuit Against Hosting Firm
Mining services broker Compass Mining won $1.5 million in a lawsuit against hosting provider Dynamics Mining, court documents from Dec. 29, 2022 show.
Compass sued Dynamics in June 2022 for failure to provide services and withholding of clients' machines. The broker had lent Dynamics $1 million to build two bitcoin mining sites, on top of paying hosting fees and deposits in the amount of $650,000. Dynamics claimed that Compass failed to pay $861,000 in hosting and electricity charges and that Compass tried to break into Dynamics' mining facilities in order to steal the mining rigs.
Judge J. Travis Laster, of the Delaware Court of Chancery ruled in favor of Compass, entering in a default judgement against Dynamics for $1,474,400, as well as post-judgment interest and costs.
“We demand a high level of honesty and integrity from our hosting providers and will aggressively protect our clientele when their interests are threatened,” Compass co-CEO and co-founder Thomas Heller said in a Dec. 30, 2022 blog post.
Seemingly in response to the judgement, Dynamics tweeted on Jan. 2 that they hope "that the US courts provides justice to the thousands of customers who have been displaced and lost their revenue."
@compass_mining top level executives are extremely immature when it comes to making business decisions @thomasheller_ I hope that the US courts provides justice to the thousands of customers who have been displaced and lost their revenue. How many active lawsuits do you have? 🤣— DynamicsMining (@DynamicsMining) January 2, 2023
However, Compass said it is not sure whether it will be able to collect the $1.5 million. "Compass Mining’s efforts in this case will now turn to collecting its judgment against Dynamics, whose attorneys withdrew from the case for non-payment," the blog post said.
Compass has been trying to improve its reputation and relationship with customers after a series of what it called "setbacks and disappointments" that led to the resignation of then-CEO Whit Gibbs.