On the 30th of December, Compass Mining, a Bitcoin mining hardware firm, announced that it won around $1.5 million judgment in court this week after a contentious fight with hosting provider Dynamics Mining. In June this year, Dynamics Mining, a Kentucky-based mining firm, said that Compass had failed to pay utility and hosting bills tied to a facility in Maine. And Compass terminated its hosting agreement, Dynamics alleged.
Compass Mining sells hardware that customers can use to mine Bitcoin. Moreover, it also provides hosting for power-intensive machines through partnered facilities. Compass filed a lawsuit against Dynamics, and in a blog post, the mining hardware firm claimed that Dynamics’ allegations were completely incorrect, lack any factual support, and create further harm to Compass. In the blog post, Compass alleged that Dynamics Mining was holding its machines hostage.
According to a report from Decrypt, a Compass representative told that the situation with Dynamics Mining is currently not uncommon in the industry. We are focused on finding high-quality providers and growing sustainably, the representative added. On the 30th of December, a judge ruled in favor of Compass and entered a default judgment against Dynamics for around $1.47 million, plus post-judgment costs and interests. In a statement, the mining hardware firm said that it is not clear whether it will be able to gather the judgment from Dynamics.
In a statement, Thomas Heller, the CEO of Compass Mining, said that Dynamics Mining violated the rights of both Compass and our clients. We’re thankful the US legal system has produced a just result, Thomas added. However, a spokesperson from Dynamics told Decrypt that Dynamics’ appeal is already in the works, and blamed paperwork that was filed mistakenly. Compass was trying to improve its terrible company image by preemptively sharing news of the court judgment, the spokesperson added.