U.S. Mining Corporation Claims Hosting Service of Stealing Cryptocurrency Mining Power
Delaware Court Grants Temporary Injunction to Cryptocurrency Miner Consensus Colocation Against Hosting Provider Mawson
In a significant development, cryptocurrency mining company Consensus Colocation has secured a temporary court injunction against hosting provider Mawson in the state of Delaware. The legal action stems from Mawson allegedly blocking access to mining equipment due to ongoing billing disputes.
At the heart of the issue are approximately 21,000 mining rigs, valued at around $30 million, which Consensus leases from Stone Ridge Ventures and operates at a facility in Midland, Pennsylvania.
The growing disagreement between the mining company and the data center owner revolves around unpaid rewards, contract terms, and relocation plans. Consensus Colocation has accused Mawson of blocking staff access to ASIC devices both physically and via VPN, and of using the equipment for its own benefit since February 28, generating between $100,000 and $200,000 per day.
However, Mawson maintains that its contract with Consensus allows it to redirect hashrate under specific conditions. In response, a court ruling has barred Mawson from restricting access to the equipment or using the hashrate until the preliminary hearing.
The collaboration between the two companies had originally planned to terminate by March 2025, with a gradual phase-out of operations. Recently, Mawson claimed that Consensus Colocation failed to pay for electricity for February and March and owes commission fees.
In contrast, Consensus' legal team argues that Mawson has unlawfully used hashrate worth significantly more than the $17,505.45 demanded as overdue payment.
Notably, back in September 2024, Bitfarms and Riot Platforms reached a settlement restricting Riot from acquiring more than 20% of its competitor's shares without board approval. While this incident is not directly related to the current dispute, it underscores the complexities and potential ramifications of such legal standoffs in the cryptocurrency mining industry.
The full extent and outcome of this court case remain to be seen as both parties prepare for the preliminary hearing. This development is closely watched by industry observers, investors, and miners alike, as it may set a precedent for future disputes between cryptocurrency mining companies and hosting providers.
In the wake of the court case, Consensus Colocation and Mawson, two entities deeply rooted in the technology industry, are embroiled in a legal dispute over business matters related to finance and cryptocurrency mining. The court has restrained Mawson from restricting access to mining equipment or using the hashrate until the preliminary hearing, emphasizing the critical importance of adhering to contract terms in the business and finance sectors.
