Crypto mining company SBI Crypto has filed a lawsuit against mining energy provider Whinstone US.
The lawsuit has reportedly been filed in the US District Court for the Western District of Texas and concerns alleged violations of the terms of the 2019 agreement.
SBI Crypto representatives allege the defendant misled the company by claiming that building permits and electricity contracts are not required to fulfill part of the hosting services contract.
According to the lawsuit, the vendor also failed to fulfill its promise to deliver 20,000 ASIC miners to the site. In addition, it allegedly repaired the installed machines in bad faith.
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SBI Crypto has accused Whinstone US of "fraudulent inducement of contract," inadequate service, misrepresentation and other violations. According to the plaintiff, the provider "did not conform to industry standards."
Nasdaq-listed Riot Platforms entered into an agreement to purchase Whinstone US in April 2021. A year later, the mining company announced a 1 GW expansion of Bitcoin mining capacity in Texas.