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Customer Accuses Bitcoin Mining Firm Blockware of Fraud

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A customer sued Blockware Solutions, the hosting provider, for Bitcoin mining equipment and fraud.

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The case was filed in U.S. Federal Court in the Northern District of Illinois on Dec. 17 ...

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and centered on an allegation that Blockware sold Faes & Co. 50 mine rigs for $525,000. 

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Faes claimed in the lawsuit that “Blockware did not actually own or operate a facility to host the miners and was not capable of doing so reliably.”  

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Also, the facilities held by third parties that Blockware could tap didn’t have reliable power, resulting in subpar service, according to the suit.

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Faes claimed that “As a result, Faes’ miners under Blockware’s management and control have experienced prolonged downtime and inoperability due to lack of power, resulting in significant loss of revenue.”

Faes claimed it had suffered damages of at least $250,000.


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