Coinmint demanded $23 million from the chipmaker

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Mining company Coinmint has sought $23 million in damages from chip makers Katena Computing for an “elaborate deception.” It is reported by CoinDesk.

According to the lawsuit, the firm was forced to buy $150 million worth of bitcoin mining equipment that Katena could not and would not supply.

According to the plaintiffs, in 2021 the firm “wrongly influenced, bribed or prodded accomplices,” including one of Coinmint’s employees, to purchase non-existent chips.

“Katena pulled off an elaborate scam to get Coinmint founder and CEO Ashton Soniat involved. They claimed that the chip has a revolutionary design that will shake the mining world,” the lawsuit says.

Katena was charged with breach of duty, fraud and incitement to crime. The company sought compensation for “actual and consequential losses, including $23 million,” which it paid in advance.

Coinmint also claims that the chipmaker was in cahoots with another tech company, DX Corr. Katena also used the firm’s contract to try to get funding from investors, including JPMorgan.

“Katena is committed to speaking openly and to the point about this incident, but will abide by the arbitration process and its confidentiality requirements. When we can speak more openly, we will do it, ”said company representatives.

Recall that in May, the mining company Riot Platforms filed a lawsuit to recover over $26 million from Rhodium Enterprises. The latter allegedly violated the contract by not paying for hosting services and maintenance of mining operations.

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