Blockware sued over alleged misrepresentation of miners' performance

London-based Faes & Company filed a ailment against crypto mining steadfast Blockware Solutions LLC connected Dec. 17, claiming it misrepresented the show capableness of its miners and lacked capable powerfulness entree to support the machines running. 

Plaintiffs allege losses of $250,000 and are seeking compensatory and punitive damages.

According to the complaint, the parties entered into contracts successful October 2021 for Faes to bargain $525,000 worthy of Bitcoin miners and related hosting services. As portion of the agreement, Blockware would big Faes' miners astatine 1 of its server facilities, which it allegedly owns and operates for a monthly hosting interest and vigor costs.

Related: Public Bitcoin mining companies plagued with $4B of corporate debt

The plaintiff alleges that astatine the clip of the agreement, however, Blockware "did not really ain oregon run a installation to big the miners and was not susceptible of doing truthful reliably." It besides noted:

"Further, to the grade Blockware had entree to third-party facilities to big and negociate the miners, the facilities lacked reliable powerfulness (likely owed to a limiting contractual statement with their vigor supplier), truthful the cognition of the miners was and is regularly taxable to interruption oregon “curtailment.” As a result, Faes’ miners nether Blockware’s absorption and power person experienced prolonged downtime and inoperability owed to deficiency of power, resulting successful important nonaccomplishment of revenue."

Faes besides noted successful the ailment that ordered the machines to beryllium delivered and hosted successful Blockware’s facilities successful January, erstwhile a Bitcoin (BTC) was worthy implicit $45,000. The rigs, however, lone came online successful April. The suit besides noted that: 

"Problems with downtime began astir 2 days aft Faes’ miners archetypal came online and person persisted passim 2022, resulting successful galore complaints and enactment tickets by Faes. Despite these problems, Blockware hosts and updates a nationalist “status page” that shows persistent precocious uptime astatine its facilities, including the Pennsylvania installation wherever Faes’ miners person been hosted, showing accordant 100% uptime for the preceding 90 days."

Despite the displayed “100% uptime”, a look astatine the incidental past shows "approximately 50 days of extended powerfulness curtailment" astatine the Pennsylvania installation during September and October, noted the complaint. 

Blockware Solutions did not instantly respond to Cointelegraphs' requests for comments.

Bitcoin mining companies had been deed hard by the crypto wintertime and a spike successful vigor costs. Approximately $2.6 cardinal is owed cumulatively by conscionable the apical 10 Bitcoin mining debtors, according to Hashrate Index.