Popular crypto mining company Bitmain is in the crypto news today for facing a $5 million lawsuit for allegedly mining cryptocurrencies for its own benefit on the devices of its customers.
The filings were published under the North District Court of California on November 19.
The lead plaintiff Gor Gevorkyan has directed his lawsuit against Bitmain’s China and U.S entities. Gevorkyan alleged that the company is trying to benefit and it is doing that successfully without authorization:
“Until the complicated and time-consuming initialization procedures are completed, Bitmain’s ASIC [Application-Specific Integrated Circuit] devices are preconfigured to use its customers’ electricity to generate cryptocurrency for the benefit of Bitmain rather than its customers.”
In this case, the filing clearly states that he purchased Bitmain devices in January 2018 and the product was ‘’difficult to configure’’. Before he could finally understand how the product works and right after he initialized his devices, they started operating at a cost-intensive mode at his expense.
The ASIC devices were mining cryptocurrencies from the very moment Gevorkyan turned on the device and the device would start transferring cryptocurrency to the Defendant’s address. This is why, in the lawsuit, Bitmain is accused of engaging in ‘’an unfair business practice’’.
Gevorkyan is seeking damages for $5 million on behalf of all the miners that are in a similar situation with Bitmain.
This is a very interesting time for Bitmain since they are aiming to raise more than $10 billion in their IPO but have a series of difficulties. Also, the hardware manufacturer could potentially face losses after investing a huge amount of its funds in Bitcoin Cash before its hard fork.
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“a) exchange between crypto assets, b) transfer of virtual assets, and c) participation in and provision of financial services related to an issuer’s offer and/or sale of a crypto asset.”Cyprus is one of the seven EU member countries that have already released a declaration that aims to promote the use of DLT in the region. Last fall, the national investment partner in the country, Invest Cyprus, signed a Memorandum of Understanding with VeChain Foundation from Singapore in order to work on multiple national level investment strategies that will be blockchain based.
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“Blockchain technology has established a highly mutual trust data sharing mechanism among tax authorities, invoice service providers, taxpayers and other parties. This is a major reason for the tax authorities to take a new step in deepening the [technological] reform [by] the distribution services.”Back in December 2018, one of the bigger cities in the Guangdong province-Shenzhen announced its success story of how blockchain technology helped with the tax invoices via the messaging app WEChat payment platform. Also, last year in November, the capital of the Guangdong and one of the most developed economic zones in China, Guangzhou, was chosen as a headquarters city for the new blockchain alliance. The alliance involves 54 different companies and is promoting blockchain technology in finances and trading. Countries around the world are opting for blockchain-based tax solutions because of the higher efficiency and transparency.
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