SBI Crypto sues bitcoin-mining capacity provider Whinstone US

SBI Crypto, a bitcoin miner, has filed suit against Whinstone US, a bitcoin-mining capacity provider. This is according to Decrypt.

The complaint was filed in the Western District of Texas and concerns alleged breaches of a 2019 agreement. SBI Crypto’s representatives allege that the defendant misled the firm by suggesting that building permits and electricity contracts for performing part of the hosting services agreement were optional.

The suit also claims the provider failed to deliver 20,000 ASIC miners to the site and allegedly negligently serviced the installed machines.

SBI Crypto accused Whinstone US of “fraudulent inducement to enter into a contract”, inadequate provision of services, misrepresentation and other violations. The plaintiff contends the provider “did not meet industry standards.”

Riot Platforms (formerly Riot Blockchain) entered into an agreement to buy Whinstone US in April 2021. A year later the mining company announced an expansion of Bitcoin mining capacity by 1 GW in Texas.

In spring 2023, the Texas Senate was introduced SB 1751, restricting incentives for first‑cryptocurrency miners. The bill provides for the mandatory registration of enterprises with more than 10 MW of capacity as large flexible-load operators with the Texas energy provider ERCOT.

In December 2022, the British firm Faes & Company filed a lawsuit against the mining company Blockware Solutions for inadequate hosting services.