Compass Mining is pleased to announce that it has obtained a judgment for approximately $1.5 million in its lawsuit against Dynamics Mining in the Delaware Court of Chancery.
Compass Mining filed a lawsuit against Dynamics Mining for failure to provide contracted services, in addition to holding Compass Mining client assets without permission, in June 2022. At the time, Dynamics Mining hosted approximately 1% of Compass Mining clients.
On July 6, 2022, the Court granted Compass emergency injunctive relief restoring Compass’s access to a Dynamics facility where Compass customer miners were hosted, leading to Compass’s recovery of that equipment.
On December 29, 2022, Judge J Travis Laster, of the Delaware Court of Chancery, ruled in favor of Compass Mining and entered default judgment against Dynamics for $1,474,400, plus post-judgment interest and costs. The judgment represents deposits, capital expenditures, and other charges improperly retained by Dynamics Mining as part of Dynamics Mining’s hosting services and planned construction of Bitcoin mining facilities. The judgment represents a ruling in Compass’s favor on the case as whole.
“We’re glad to see the correct ruling play out,” Thomas Heller, co-CEO and co-founder of Compass Mining said. “Dynamics Mining violated the rights of both Compass Mining and our clients, and we’re thankful the US legal system has produced a just result.”
Compass Mining’s efforts in this case will now turn to collecting its judgment against Dynamics, whose attorneys withdrew from the case for non-payment. It is not clear whether Compass will be able to collect.
“We demand a high level of honesty and integrity from our hosting providers and will aggressively protect our clientele when their interests are threatened,” Heller said.