27/11/18 04:00 UTC-4

Bitmain was accused of "dishonest business practices"

A lawsuit was filed against Bitmain
A lawsuit was filed against Bitmain

​Bitmain, a cryptocurrency miningMining
– is a type of activity for creating new blocks in the Blockchain to ensure proper system operation. Details
giant, was faced with a group suit of more than $ 5 million. According to the plaintiffs, "the company is not operating in crypto-mining," as reported by CoinDesk.

On November 19, a Los Angeles resident, Gor Gevorkyan, filed a lawsuit against Bitmain enterprises in China and the United States in a federal court in the Northern District of California. According to the plaintiff, the Bitmain devices use the computing power of customers for their own benefit. Until the full tuning of the technological mining devices, cryptocurrencies are secretly mined to the account of Bitmain.

"Until complex and time-consuming initialization procedures are completed, Bitmain ASIC (Application-Specific Integrated Circuit) devices are preconfigured to use their customers' electricity to generate cryptocurrency in the interests of Bitmain, not its customers." – аrom a lawsuit.

The document states that more than 100 users of Bitmain have joined the lawsuit, and the total amount of customer losses exceeds 5,000,000 US dollars.

Gevorkyan said that in January of this year he acquired Bitmain ASIC devices, including AntMiner S9, in orderOrder
– automatic application to buy or sell cryptocurrency. Orders are used during trading on the stock exchange to open and close a position. Details
to mine Bitcoin. However, the user encountered difficulties while configuring devices.

"During this time, the ASIC devices were preconfigured for mining and issuing a cryptocurrency to the Respondent. Also, during this time, ASIC devices operated at full capacity, consuming a significant amount of electricity at the expense of the plaintiffs." – Gor Gevorkyan.

It further adds that Bitmain's "dishonest business practice" continued until the ASIC devices were associated with Gevorkian's personal account.

As a result, Gevorkian and other members are eager to fully recover all costs incurred as a result of "Bitmain's dishonest actions."

Recall that a bit earlier this month, the Bitmain company itself filed a lawsuit against an anonymous thief in a US federal court, who allegedly stole 617 Bitcoins from the company’s account, and which he holds in his Binance account.

Editor: Alyona Nabok

See also: "Mt.Gox trustee and trustee extends the deadlines for a "civil rehabilitation" of a devastated platform"

#Bitmain #mining #Asic #lawsuit



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