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News

New York Miner Coinmint Sues California Chip Maker For $23 Million

May 26, 2023 - Around 3 mins mins to read

Key Points:

  • Coinmint has sought $23 million in damages from chipmaker Katena Computing for “elaborate deception.”
  • According to the complaint, the company was obliged to purchase $150 million in Bitcoin mining equipment from Katena, which Katena could not and would not furnish.
  • Coinmint also says that the chipmaker collaborated with another tech firm, DX Corr.
According to CoinDesk, Coinmint, a New York cryptocurrency mining firm, accused two semiconductor companies of using “elaborate deception” to entice miners into a $150 million purchase deal, and the lawsuit sought more than $23 million in damages.
New York Miner Coinmint Sues California Chip Maker For $23 Million

Coinmint claims that bitcoin technology company Katena Computing and semiconductor design firm DX Corr devised a scheme to induce it to acquire up to $150 million in Bitcoin mining machines but that Katena was incapable and did not intend to deliver the devices. The complaint charges DX Corr and its executives, as well as former Coinmint workers, with fraud, violation of contract, and breach of fiduciary responsibility.

According to Coinmint, these devices were not planned nor capable of being delivered by Katena. This is the core of a case filed on January 26th in California’s Santa Clara County Superior Court.

The company claims that Katena Computing engaged in unethical actions, using unlawful influence and maybe using bribery to get co-conspirators to participate in this scheme. In this alleged deception, an unnamed Coinmint employee got involved in a $150 million procurement contract for Bitcoin mining equipment.

New York Miner Coinmint Sues California Chip Maker For $23 Million

Its claims go beyond the original $23 million deposit it made for the transaction, with the company claiming compensatory, consequential, and even punitive damages.

Coinmint also says that the chipmaker collaborated with another tech firm, DX Corr. Katena also utilized the firm’s contract to attempt to raise money from investors such as JPMorgan.

“Katena is in binding arbitration concerning Coinmint’s breach of contract and is seeking damages caused by Coinmint’s failure to pay. Katena is eager to talk openly and factually about this dispute but will honor the arbitration process and its confidentiality requirements. When we can talk more openly, we will,” claimed a Katena spokesperson.

DX Corr filed a motion to dismiss the complaint earlier this month, adding another layer to this multi-faceted legal drama. The semiconductor design firm alleges Coinmint failed to present enough claims to support the charges leveled against them.

Remember that Riot Platforms went to court in May to reclaim more than $26 million from Rhodium Enterprises. The latter reportedly breached the contract by failing to pay for hosting services and mining operations upkeep.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Coinmint

DX Corr

Katena

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

New York Miner Coinmint Sues California Chip Maker For $23 Million

Key Points:

  • Coinmint has sought $23 million in damages from chipmaker Katena Computing for “elaborate deception.”
  • According to the complaint, the company was obliged to purchase $150 million in Bitcoin mining equipment from Katena, which Katena could not and would not furnish.
  • Coinmint also says that the chipmaker collaborated with another tech firm, DX Corr.
According to CoinDesk, Coinmint, a New York cryptocurrency mining firm, accused two semiconductor companies of using “elaborate deception” to entice miners into a $150 million purchase deal, and the lawsuit sought more than $23 million in damages.
New York Miner Coinmint Sues California Chip Maker For $23 Million

Coinmint claims that bitcoin technology company Katena Computing and semiconductor design firm DX Corr devised a scheme to induce it to acquire up to $150 million in Bitcoin mining machines but that Katena was incapable and did not intend to deliver the devices. The complaint charges DX Corr and its executives, as well as former Coinmint workers, with fraud, violation of contract, and breach of fiduciary responsibility.

According to Coinmint, these devices were not planned nor capable of being delivered by Katena. This is the core of a case filed on January 26th in California’s Santa Clara County Superior Court.

The company claims that Katena Computing engaged in unethical actions, using unlawful influence and maybe using bribery to get co-conspirators to participate in this scheme. In this alleged deception, an unnamed Coinmint employee got involved in a $150 million procurement contract for Bitcoin mining equipment.

New York Miner Coinmint Sues California Chip Maker For $23 Million

Its claims go beyond the original $23 million deposit it made for the transaction, with the company claiming compensatory, consequential, and even punitive damages.

Coinmint also says that the chipmaker collaborated with another tech firm, DX Corr. Katena also utilized the firm’s contract to attempt to raise money from investors such as JPMorgan.

“Katena is in binding arbitration concerning Coinmint’s breach of contract and is seeking damages caused by Coinmint’s failure to pay. Katena is eager to talk openly and factually about this dispute but will honor the arbitration process and its confidentiality requirements. When we can talk more openly, we will,” claimed a Katena spokesperson.

DX Corr filed a motion to dismiss the complaint earlier this month, adding another layer to this multi-faceted legal drama. The semiconductor design firm alleges Coinmint failed to present enough claims to support the charges leveled against them.

Remember that Riot Platforms went to court in May to reclaim more than $26 million from Rhodium Enterprises. The latter reportedly breached the contract by failing to pay for hosting services and mining operations upkeep.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

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