Thursday, February 2, 2023

Blockware sued for alleged misrepresentation of miner performance

Face & Companylocated in london, Lawsuit filed against cryptocurrency mining company Blockware Solutions LLC alleged on 17 December misrepresented the performance capabilities of its miners and lacked access to sufficient power to keep the machines running,

Plaintiff alleges damages of $250,000 and seeks compensatory and punitive damages,

According to the lawsuit, the parties entered into the contract in October 2021 Attempts to buy $525,000 worth of bitcoin miners and related hosting services, As part of the agreement, Blockware will host Faes miners in one of its server facilitiesWho supposedly owns and operates it for a monthly hosting fee and energy costs.

Although, The plaintiffs allege that at the time of the settlement, Blockware “did not actually own or operate a facility to host miners and was not able to do so reliably”., He also noted that:

“Furthermore, to the extent that Blockware had access to third-party facilities to host and manage miners, the facilities lacked reliable power (likely due to a limited contractual agreement with their electricity provider), so miners Miners’ operations were and are subject to regular interruptions or “outages”. As a result, Faes miners under Blockware’s management and control have experienced inefficiencies due to prolonged periods of downtime and power outages, resulting in significant loss of revenue. Has happened.”

Faes also mentioned in the complaint that Ordered the machines to be delivered and placed at the Blockware facility in JanuaryWhen the value of one bitcoin (BTC) was over $45,000. However, the equipment did not become operational until April., The lawsuit also states that:

“The downtime issues began about two days after Faes miners first connected and persisted throughout 2022, leading to numerous complaints and support tickets from Faes. Despite these issues, Blockware continues to host a public “status page” and Updates showing consistent high uptime. Facilities, including the Pennsylvania facility where Faes miners are hosted, have been consistently showing 100% uptime for the past 90 days”.

Despite “100% uptime” being displayed, A look at the event history shows “extended power outages of approximately 50 days” at the Pennsylvania facility during September and October, the complaint states.

Blockware Solutions did not immediately respond to Cointelegraph’s requests for comment.

Bitcoin mining companies hit hard by crypto winter and rising energy costs, According to the Hashrate Index, the top 10 bitcoin mining debtors alone owe a combined $2.6 billion.

the explanation: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be construed as financial advice or investment recommendation. All investments and commercial dealings involve risk and it is the responsibility of each individual to conduct appropriate research before making any investment decision.

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