January 27, 2023

Compass Mining clients sued the company for $2 million

Article reading time:
1 min.

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 the clients of the Texas miningCompass Mining sued the company for $2 million in damages 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 has stopped
cooperation with Bit River due to fear of sanctionsback 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, representatives of the company have already stated thatcannot do 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 lawsuit authors claim that Compass's promise ofбезотказной работе 95% машин было ложным — в действительности оно не превышало 50-60%. Некоторые утверждают, что и вовсе находились офлайн в течение нескольких недель.

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