Bitcoin mining equipment and hosting provider Blockware Solutions was accused by a customer in a lawsuit of breach of contract, negligence, deceptive trade practices and fraud.
The case, filed in U.S. federal court in the Northern District of Illinois on Dec. 17, centers around an allegation that Blockware sold Faes & Co. 50 mining rigs for $525,000. But, Faes said in the lawsuit, “Blockware did not actually own or operate a facility to host the miners and was not capable of doing so reliably.” Also, the facilities owned by third parties that Blockware could tap didn’t have reliable power, resulting in subpar service, according to the suit.
“As a result, Faes’ miners under Blockware’s management and control have experienced prolonged downtime and inoperability due to lack of power, resulting in significant loss of revenue,” Faes argued. Faes said it has suffered at least $250,000 of damages.
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