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Compass Mining Wins $1.5M in Lawsuit Against Hosting Firm

Mining services broker Compass Mining won $1.5 million in a lawsuit against hosting provider Dynamics Mining, court documents from Dec. 29, 2022 show.

Compass sued Dynamics in June 2022 for failure to provide services and withholding of clients' machines. The broker had lent Dynamics $1 million to build two bitcoin mining sites, on top of paying hosting fees and deposits in the amount of $650,000. Dynamics claimed that Compass failed to pay $861,000 in hosting and electricity charges and that Compass tried to break into Dynamics' mining facilities in order to steal the mining rigs.

Judge J. Travis Laster, of the Delaware Court of Chancery ruled in favor of Compass, entering in a default judgement against Dynamics for $1,474,400, as well as post-judgment interest and costs.

Compass has been trying to improve its reputation and relationship with customers after a series of what it called "setbacks and disappointments" that led to the resignation of then-CEO Whit Gibbs.

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