US Mining Firm Accuses Hosting Provider of Hashrate Theft

The cryptocurrency mining company Consensus Colocation secured a temporary court injunction in Delaware (USA) against its hosting provider, Mawson. The latter blocked access to equipment due to disagreements over payments.

The document mentions 21,000 mining installations valued at $30 million, which Consensus rents from Stone Ridge Ventures, operating at a facility in Midland, Pennsylvania.

Disputes arose between the miner and the data center owner regarding allegedly unpaid rewards, agreement terms, and relocation plans.

In its court request, the plaintiff stated that Mawson blocked staff access to ASIC devices both physically and via VPN.

Furthermore, since February 28, Mawson allegedly began using the equipment for its own benefit, generating profits of $100,000 to $200,000 per day.

The defendant noted that such a possibility is stated in the agreement with Consensus Colocation. The company has a preferential right in case of relocation of the installations.

According to the March 12 ruling, the injunction is in effect until a preliminary court hearing. Mawson is required not to use the hashrate and not to restrict Consensus’s access.

The companies were expected to cease cooperation by the end of March 2025 with a gradual winding down of operations.

Representatives of Mawson claim that the firm is owed commissions as well as prepayment for electricity for February and March. The hosting agreement grants the provider the right to redirect the hashrate of Consensus miners.

“The agreement was only valid until April 1, 2024, and only under narrow circumstances related to deposit replenishment. Mawson stole hashrate worth significantly more than the $17,505.45 it unjustifiably demands as overdue payment,” the plaintiff’s lawyers stated.

In September, Bitfarms and Riot Platforms reached a settlement agreement regarding a share stake. The agreement prohibits the latter from acquiring more than 20% of the competitor’s shares without board approval.