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Compass Mining clients sued the company for $2 million

The mining company is accused of not being able to return equipment purchased by customers, which is now located in Russia.

It is reported that clients of the Texas mining company Compass Mining sued the company demanding a refund of $ 2 million for unreturned equipment.. The January 17 lawsuit alleges that the firm is suspected of fraud because it failed to warn the Russian company Bit River that it was only an intermediary, and the actual owners of the equipment are the ones who are now the plaintiffs.

Compass Mining ended cooperation with Bit River due to fear of sanctions back in January 2022. The lawsuit alleges that the company did not even try to return the equipment or exchange it for assets.. The plaintiffs insist that Compass Mining is obliged to return the miners of its customers.

In response, company representatives have already stated that they cannot conduct any business with Bit River.. The Russian company told the plaintiffs that under the contract all equipment belongs to Compass and, accordingly, all issues must be resolved with the Texas company.

The authors of the lawsuit claim that Compass's promise of uptime of 95% of machines was false – in reality it did not exceed 50-60%. Some claim to have been offline for several weeks at all.

Previously, Compass Mining stopped working in Georgia due to internal problems. Customers were promised to be transferred to equipment located in the United States.