According to a recent post, Compass mining revealed that it won approximately $1.5 million in a lawsuit against the U.S.-based organization Dynamic mining. The mining organization was pleased to have won the Delaware Court of Chancery. However, Dynamics has vowed to conduct an appeal to the ruling.
A win to Compass mining
Compass Mining, a company that primarily caters to retail customers and brokers bitcoin mining equipment and hosting services, claimed this week that it had won a nearly $1.5 million ruling in Court after contentious combat with dedicated server Dynamic Mining.
Compass stated:
“Compass Mining is pleased to announce that it has obtained a judgment for approximately $1.5 million in its lawsuit against Dynamic Mining in the Delaware Court of Chancery.”
In June 2022, Compass Mining filed an action against Dynamic Mining for failing to perform contractual services and retaining client assets without authorization. Dynamic Mining hosted about 1% of Compass Mining’s customers at that moment.
The Kentucky-based company (Dynamic) revealed on Twitter that Compass Mining didn’t complete power consumption payment for their mining services; thus, the latter discarded the contract. It added that there were 3 non-payment and six payment delays of their hosting charges and electricity bills. This forced the organization (Dynamic) to attach a copy of the letter terminating the contract with Compass Mining.
On June 27, Dynamic stated in another tweet that Compass’s power utilization had amounted to $1.2 million. However, Compass Mining only made a $665k payment. This forced Whit Gibbs, Compass mining CEO, to take the case at hand to Court instead of engaging in a Twitter scandal with Dynamic.
Dynamics issued a judgment for $1.4 million plus expenses
On July 6, 2022, the Court upheld Compass’ urgent preliminary injunction allowing Compass to obtain access to a Dynamic institution hosting Compass customer miners, allowing Compass to reclaim those devices.
Dynamic’s allegations, according to Compass, are “completely false, lack any factual basis, and generate additional destruction to Compass, as per the lawsuit. Additionally, the company claimed Dynamic Mining was “hostage-taking” its equipment.
Compass co-CEO Thomas Heller said in a statement:
“Dynamic Mining violated the rights of both Compass Mining and our clients, and we’re thankful the U.S. legal system has produced a just result.”The Delaware Court of Chancery’s Judge J Travis Laster decided to favor Compass Mining on December 29, 2022. It reached a summary judgment against Dynamic for $1,474,400 plus expenses and post-judgment participation. The ruling is for deposits, capital outlays, and other amounts that Dynamic Mining incorrectly held for hosting services and the site planning of Bitcoin mining facilities. The decision signifies a choice in favor of Compass in the case as a whole.