In the labyrinthine world of cryptocurrency, where every turn promises either a pot of gold or a pitfall, Bitmain, the illustrious mining equipment manufacturer, finds itself ensnared in a legal web spun by a former partner, Old Const. According to Old Const, Bitmain has, with the grace of a bull in a china shop, abruptly terminated a hosting agreement without a justifiable reason and now seeks to unlawfully reclaim its hardware. 🏛️
Old Const, not one to sit idly by while its contractual rights are trampled upon, has filed a lawsuit in the hope of securing a Temporary Restraining Order. The drama thickens as Bitmain allegedly threatened to seek a new jurisdiction, perhaps a more favorable one, to obtain a seizure order for the hardware in question. 🚀
Bitmain’s New Lawsuit Explained
Despite the tumultuous start to 2025, which saw Bitmain’s subsidiary placed on a sanctions list in January, the year has otherwise been a veritable cornucopia of success for Bitmain’s US operations. The firm inked a $314 million deal with the Trump-backed American Bitcoin, a move that solidified its intentions to formally establish US operations. However, as fate would have it, Bitmain is now embroiled in a legal tussle with Old Const, a US hosting provider, adding a dash of unpredictability to an otherwise promising year. 🎉
“On August 22, 2025, Bitmain’s counsel sent Old Const a Notice of Termination as to all agreements including the HSA. The Notice of Termination was improper and a material breach of the parties’ agreements. Bitmain has fabricated purported breaches in order to terminate the agreement immediately,” the lawsuit claimed, painting a picture of corporate intrigue and betrayal. 😈
The lawsuit further alleges that Bitmain attempted to back out of several key clauses of a November 2024 agreement. Under this agreement, Old Const had committed to purchasing mining equipment from Bitmain and providing hosting services. Now, however, the two giants are set to part ways prematurely, leaving behind a trail of broken contracts and bruised egos. 💔
Hardware Recovery Efforts
Adding another layer to the saga, Old Const contends that Bitmain might seek to recover some of its mining hardware without a legitimate cause. The lawsuit accuses Bitmain of violating the agreement in multiple ways, including the termination under false pretenses. One of the more contentious points involves the agreed-upon jurisdiction for legal disputes.
Both companies had initially agreed to resolve all legal disputes in Texas, a decision made in the spirit of fairness and convenience. However, Bitmain, according to Old Const, threatened to file a seizure order in a Tennessee state court, a move that smacks of desperation and a disregard for the original agreement. 📜
Old Const, determined to prevent such a maneuver, filed its lawsuit against Bitmain to ensure that the courts first examine the breach of contract allegations before any hardware is seized. The lawsuit was filed just two days ago, leaving much of the story still to unfold. 🕵️♂️
Bitmain, no stranger to hardware disputes, faced similar challenges last year when attempts to recover equipment from former partners fell flat. Despite the current legal entanglements, the company remains a formidable player in the cryptocurrency world, with numerous projects and partnerships in the works. Whether this latest legal battle will be resolved through a settlement or a protracted court fight remains to be seen, but one thing is certain: Bitmain has a lot of irons in the fire, and this is just one more spark in the grand scheme of things. 🔥
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2025-09-05 22:43