A Delaware court has granted a temporary reprieve to a Pennsylvanian Bitcoin mining firm currently in a payment dispute with its hosting company — barring the hosting provider from blocking access and otherwise commandeering the miner’s 21,000 rigs at the property.
On March 12, Vice-Chancellor Morgan Zurn issued a temporary injunction, requested by Bitcoin miner Stone Ridge Ventures, the owner of Consensus Systems and Colocations, is suing Mawson Hosting for providing hosting and colocation to Bitcoin miners.
They were at odds over the payment of allegedly unpaid fees as well as the terms and conditions in their contract. Consensus was also planning to relocate. Mawson reportedly blocked the access for the miner’s staff to the site.
Mawson, the firms claim, has operated the rigs in the vicinity since 28 February for its own profit after Consensus prevented them from entering.
Mawson claims, on the other hand, that it is allowed to operate the rigs in accordance with its contract with Consensus and has the first right of refusal when relocating its plans.
Bitcoin Miner has sought injunctive action to gain control over their equipment, and stop Mawson’s use of them.
Mawson has been prohibited from using the hashrate from the miners Consensus is no longer allowed to restrict digital or physical access of the Midland facility, Pennsylvania.
The Delaware court has issued a temporary injunction that prevents Mawson Infrastructure Group, based in Midland, Pennsylvania from operating the drilling rigs. Source: Law360
Temporary restraining orders are in effect until the preliminary injunction can be held.
Cointelegraph’s requests for comments to Mawson Infrastructure Group or Consensus Colocation were not responded immediately.
What started the dispute?
Lawyers for Consensus filed a legal complaint on March 6, accusing Mawson (BTC) with their rigs — valued at $30 million — since Feb. 28, generating daily profits of between $100,000 and $200,000 while blocking access to them both physically and through VPN access.
Consensus, Stone Ridge and Mawson signed a Colocation Agreement in December 2023.
The partners agreed to end the partnership at the end of the month of March 2025. They will reduce their capacity gradually up until the date and begin the removal process on 3 March.
Mawson claims that the money was due fees and electricity prepayments The deposit will be replenished in February and March. Consensus has the rights to redirect its miners’ hashrate and to use the profits to refill the deposit.
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“On its face, it was operative only prior to April 1, 2024, and only in narrow circumstances relating to the replenishment of a deposit,” In the complaint, lawyers representing Consensus claim that they were unable to prove their case.
“When Mawson began redirecting the hashrate on Feb. 28, the deposit was fully paid. And in any event, Mawson has stolen hashrate worth many times more than the $17,505.45 Mawson claims, without justification, that Consensus owes in purported late fees.”
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Source: cointelegraph.com
