Customers are suing Compass Mining for over $2 million, alleging fraud, after the company cut ties with Russian hosting company Bit River and failed to return customers’ Bitcoin machines, citing a non-applicable United States sanction as the reason.
According to a court document filed on Jan. 17, Compass Mining issued a notice in April 2022 that it has terminated its relationships and dealings with Bit River due to the sanctions imposed by Executive Order 14024.
It is alleged that Compass did not offer to return or even retrieve the assets its customers entrusted the company with, hosted at Bit River’s facilities in Russia. However, it was stated that it is false that the mining machines’ return would violate Executive Order 14024, which prohibits dealings with sanctioned entities.
The court document noted that Compass has “both the right and obligation to effect the return of its customers’ miners. Compass representatives met customers’ concerns with hostility, saying that it is unable to conduct or even facilitate any business dealings with Bit River.
