Customers are suing Compass Mining for over $2 million, alleging fraud, after the company cut ties with Russian hosting company Bit River and failed to return customers’ Bitcoin machines, citing a non-applicable United States sanction as the reason.
According to a court document filed on Jan. 17, Compass Mining issued a notice in April 2022 that it has terminated its “relationships and dealings with Bit River” due to the sanctions imposed by Executive Order 14024.
It is alleged that Compass “did not offer” to return or even retrieve the assets that its customers entrusted the company with to host at Bit River’s facilities in Russia.
However, it was stated that it is “false” that the return of the mining machines would be in violation of Executive Order 14024, which prohibits dealings with sanctioned entities.
The court document noted that Compass has “both the right and obligation to effect the return of its customers’ miners.”
(By CIARAN LYONS)