$2 Million Lawsuit Filed Against Compass Mining Dismissed by Court

  • Plaintiffs can submit their second amended lawsuit by two weeks.
  • Compass did little to assist clients in recovering their lost devices as per the claim.

Compass Mining had its case rejected the day after a group of clients tried to sue the firm for more than $2 million for failing to return their Bitcoin equipment after severing links with a Russian hosting provider. The court has, however, extended the deadline for the plaintiffs to submit their second amended lawsuit by two weeks.

Compass Mining and BitRiver partnered to provide access to enterprise-grade, low-cost, and low-carbon cryptocurrency mining facilities in Russia, which prompted the first complaint.

Moreover, Compass Mining allegedly never returned Bitcoin machines hosted at the Russian facility after terminating “relationships and dealings with Bit River” in April 2022 due to sanctions imposed by Executive Order 14024, according to a complaint filed with the United States District Court for the Southern District of Florida on January 17.

Just the Middlemen

According to the lawsuit, Compass has “both the right and obligation to effect the return of its customers’ miners.” and an argument that doing so would violate Executive Order 14024 is “false.”

The case continues by claiming that Compass did little to assist clients in recovering their lost devices. According to the lawsuit, Compass advised its clients that it is “unable to conduct or even facilitate” any commercial transactions with Bit River.

Bit River was apparently transferred back to Compass after the Russian company left its clients with no other choice than to contact them. It was said in the court filing that Compass should have informed Bit River that they were just the middlemen and that the machines were owned and paid for by the plaintiffs.

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