- The Texas miner failed to remit payments for leased power
- And also illegally used power credits
- The case will now go to court
Mining giant Riot Platforms filed suit against Rhodium Enterprises, a Texas-based bitcoin miner. They accuse the partner of failing to pay $26 million in commissions for mining capacity.
The other day, Riot Platform released its financial results for the first quarter. It says Rhodium Enterprises breached the contract by failing to pay hosting and maintenance fees.
This amount was to go into the accounts of Whinstone Bitcoin Mining, a subsidiary of Riot Platforms.
Miner used Whinstone’s services, but never transferred the money. Riot also claimed that Rhodium units had been taking out electricity loans for several years for which they had no right to.
In late 2020, the parties updated the terms of the contract, under their terms Rhodium lost its right to preferential loan terms.
On May 2, Riot filed a complaint in the Circuit Court of Milam County, Texas. They are demanding that Rhodium pay $26 million in fees and repay electricity credits.
The company has also issued a legal notice to Rhodium Enterprises, offering to settle the dispute out of court.. They have until May 30 to respond to the claims.
We recently wrote that Kazakhstan collected $7 million in taxes from miners for 2022. But this year the amount may be lower because of ongoing problems with miners.