The PRC Supreme Court governed in favor of Genesis Mining in the problem of seized GPU miners. The conflict between the company and its hosting provider has been dragging on since the fall of 2018.
The results of the rulings in the GM case, issued on June 23, were released only on July 29 including revealed a few more particulars on the lawsuit, which includes almost half a million GPU miners. The dispute itself remained unnoticed for a long time.
Genesis Mining was created in 2013. Then, in 2017, its leaders started a digital currency mining company with their companions, but it wasn't till early 2021 that they began their own business called Genesis Digital Assets. At that time, the company was in search of finance, after which it successfully ended the financial round with a result of $125M.
After expanding the business in 2017, GM agreed with Chinese hosting provider Chuangshiji Technology Limited, whose data centers were located in Fuzhou, Jiangxi Province. But since September 2018, payments to Genesis Mining have been suspended due to non-payment for the electricity they used.
In the spring of 2019, GM appealed to the Fuzhou Court to return 560,000 GPU miners and 60,580 AntMiner S9 ASIC miners to them. Representatives of the company cited Chuangshiji Technology for not fulfilling their commitments related to the extraction of cryptocurrencies, having chosen to cancel the contract unilaterally. Chuangshiji Technology not only rejected to reverse the miners but also partially sold the machines.
After reviewing the petition, the Fuzhou Court referred it to the Jiangxi Provincial Supreme People's Court. He, in turn, ruled on the incident in 2020, ordering Chuangshiji Technology to give 100,000 GPU miners back to Genesis Mining in mainland China and another 385,681 miners in the form of RX470 8Gb cards to Genesis Mining, based in Hong Kong. According to Ethash, their total estimated hash rate exceeds 14 TH s. With it, the company's daily gross profit would be about 1 million at an electricity price of 0.06 per kWh.
The hosting provider was not satisfied with such a court decision and he filed a request with the Supreme Court of the PRC, asking for a reconsideration. And only when the latter considered the event in early 2021, sided with the Supreme People's Court of Jiangxi Province, did the company receive the right to return its facilities.
According to the court's statement, Chuangshiji Technology neglected to provide any indication to prove that the agreement with GM involved a mutual venture with capital and share of the profits among them, considering their partnership to be a contractual trust link. Consequently, Genesis Mining had every power to end the agreement at any moment and oblige the return of working machines in enough condition for transportation.
It seems that the final settlement of the court was influenced, among other things, by the recent ban on mining in the Celestial Empire, since it is fully consistent with China's plan to suppress the actions of miners.
Hive OS is a one-stop solution for control, monitoring, administration of your mining farms and mining pool.
CoinShark is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. This article is for informational purposes, prepared on the basis of materials and information from open sources. Cryptocurrency is a risky asset, investments in it can lead to losses. Users should do their own research before taking any action.