Faes & Company sues Blockware Solutions over hosting services

British firm Faes & Company подала in court against the mining company Blockware Solutions for improper hosting services.

According to the complaint, in October 2021 the parties entered into an agreement to purchase Faes’ bitcoin miners for $525,000 and related hosting services.

Under the contract Blockware agreed to place the installations at one of its facilities in Pennsylvania (USA) for monthly payments and reimbursement of electricity costs.

However the plaintiff contends that at the time the agreement was signed Blockware factually did not own or operate the hosting facility and was not able to do so reliably.

“The facilities did not have reliable capacity (likely due to constraints in the electricity-supply agreement), therefore the operation of the miners was regularly interrupted or curtailed. As a result, installations managed by Blockware have experienced long outages, resulting in significant revenue losses,” Faes said.

The British company also noted that Blockware was supposed to host the miners in January but connected the devices to the network only in April. According to the suit, downtime problems began on the second day after the equipment started operating. Meanwhile the host on the ‘status page’ shows 100% uptime.

Faes noted that only in September–October they recorded 50 days of prolonged power outages at the facility contrary to Blockware’s statements.

The London-based company has sought from the defendant damages under the current contract, compensation for fraudulent business practices and legal costs.

In July Blockware attracted $25 million to fund expansion of its mining business.

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