HomeBlockchainFraud accusations against Compass Mining after the company severed ties with Russia

Fraud accusations against Compass Mining after the company severed ties with Russia

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Compass Mining severed ties with Russian hosting provider Bit River and did not return Bitcoin mining equipment to its customers. The company claimed the reason for its action as a non-applicable sanction issued by the United States of America. Directly as a result of this, Compass Mining customers have filed lawsuits against the company, alleging that it engaged in deceptive business practices in an attempt to recover more than $2 million.

A document filed with the court on January 17 reveals that Compass Mining informed the court in April 2022 that it had terminated its “relationships and transactions with Bit River” in direct response to the sanctions that were issued as a result of the Executive Order. . 14024. The information was revealed in the document that was filed with the court.

According to the allegations, Compass “failed to offer” to return or even recover the assets that its clients had entrusted to the firm and that were housed at the Bit River facility in Russia. These assets had been entrusted to Compass by its clients. The Russian Federation was the location of these assets.

On the other hand, it has been said that the statement that the return of the mining equipment would violate Executive Decree 14024 is “false”. This order prohibits doing business with companies that have been blacklisted. Transactions with companies that have been placed on a blacklist are prohibited under this ruling. It was said that this directive may be the cause of the disagreement in question.

Compass has “both the right and the responsibility” to ensure the return of its clients’ mines, as set out in the legal agreement between the two parties. The document has this stipulation as part of it.

In an angry response to concerns raised by customers, Compass management said the company “cannot execute or assist” any business transactions with Bit River. This was done in response to concerns expressed by consumers.

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