- Whinstone faces the loss of around US$15 million from GMO Internet Group.
- The loss is noted on the issue of over-usage of mining equipment.
The mining firm, Whinstone, filed a document in the U.S. District Court for the Southern District of New York this Monday against GMO Internet Group. The firm noted the damage of approximately U.S. $15 million on behalf of a long run controversy of over-usage of mining equipment.
The Old Battle Between Whinstone-GMO
The old-battle started in the year 2018 between Whinstone and GMO Internet. It became quite hot after the hosting firm raised the power cost. It also must be noted that the hosting firms urge higher electricity costs for operating the machines.
In the lawsuit, Whinstone noted US$50 million losses, due to the failure to lodge GMO Machines in the mining sites of Louisiana and Texas. The firm further mentioned the overcharging cost for electricity by GMO Internet. The following lawsuit was filed in June, 2022.
While, GMO Internet, noted three months late operation in the Louisiana site. GMO, also stated that it made room for 385 machines, instead of agreeing on the number of 66,693. However, the Louisiana site shut down in 2019 with the issue of securing power.
Even after the so-called battle between these two firms, they continued their business by moving onto hosting GMO machines in Texas at low cost. GMO also got the repayment of the original deposit and the compensation over the loss of profits caused by power outages.
GMO Internet claimed the discussion on the losses stopped after the acquisition by RIOT on Whinstone. In like manner, Whinstone denied the allegations filed by GMO over the Louisiana site. The reason that Whinstone mentioned is failure on the agreement of the new contract, and reserved and purchased electricity that was not even used for GMO.
Source: https://www.thecoinrepublic.com/2022/08/26/whinstone-noted-the-damage-of-us-15m-from-japanese-firm-gmo/