The mining company Coinmint is seeking $23 million in compensation from chipmaker Katena Computing for ‘a carefully thought-out deception’. CoinDesk reports.
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According to the complaint, the firm was pressured into purchasing $150 million worth of Bitcoin-mining equipment that Katena could not and would not supply.
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According to the plaintiffs, in 2021 the firm ‘unlawfully influenced, bribed or pressured co-conspirators’, including one of Coinmint’s employees, to purchase non-existent chips.
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“Katena executed a meticulously conceived deception to involve the founder and CEO of Coinmint, Ashton Soniata. They claimed the chip possessed a revolutionary design that would shake up the mining world”, the suit states.
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Katena was accused of breach of obligations, fraud and incitement to crime. The company sought damages for ‘actual and consequential losses, including $23 million’, which it had paid as a deposit.
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Coinmint also alleges that the chipmaker was in cahoots with another technology company — DX Corr. Katena also used the contract with the firm to attempt to secure funding from investors, including JPMorgan.
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“Katena aims to speak openly and substantively about this incident, but will comply with the arbitration process and its confidentiality requirements. When we can speak more openly, we will”, said company representatives.
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Earlier in May, the mining firm Riot Platforms filed a lawsuit to recover more than $26 million from Rhodium Enterprises. The latter allegedly breached the contract by failing to pay for hosting and mining-operation support services.