Texas Bitcoin Mining Operation Shut Down By Host’s Armed Security

[DaveF]

I usually don't post news articles but have not seen this discussed, if it has been and I missed it I'll lock the thread.
But: https://bitcoinmagazine.com/legal/texas-bitcoin-mining-operation-shutdown-by-hosts-armed-security

What a mess, reading about it I think at this point the only winners are going to be the lawyers.
But, considering the number of lawsuits that have come against Riot over the years I guess it's just the way they run their business.

https://casetext.com/case/takata-v-riot-blockchain-inc-2
https://www.coindesk.com/business/2022/09/21/riot-blockchain-sues-northern-data-over-disclosures-related-to-texas-bitcoin-mine-acquisition/
https://decrypt.co/125685/sbi-crypto-sues-riot-blockchain-owned-data-center-fraud-negligence

-Dave

[franky1]

only a quick browse.. but from what i have read

not only did riot sell excess electric(contracts rated at $0.03/kwh) back to the grid for profit,
not only did they not then pass that electric sale profit to its contractor
not only did riot take on ASIC hosting contracts promising ordering and management of 20k asics but never actually getting the asics
not only did they then sell asics to customers that were old/outdated/sub-par quality
not only did they over inflate their company valuations to pump and dump their share price

hmm i think i must read more.

[DaveF]

only a quick browse.. but from what i have read

not only did riot sell excess electric(contracts rated at $0.03/kwh) back to the grid for profit,
not only did they not then pass that electric sale profit to its contractor
not only did riot take on ASIC hosting contracts promising ordering and management of 20k asics but never actually getting the asics
not only did they then sell asics to customers that were old/outdated/sub-par quality
not only did they over inflate their company valuations to pump and dump their share price

hmm i think i must read more.

But it's still amazing how many people keep saying how great riot is.

Not really that important in the scheme of things but interesting in the fact that they still get people wanting to deal with them and then these people are shocked when the get screwed over. Not saying that Riot is 100% guilty of all the thing that people say they do but when there are places that why would you take that chance?

-Dave

[dzungmobile]

But, considering the number of lawsuits that have come against Riot over the years I guess it's just the way they run their business.

Over months since the last bull run, Texas is like a hub of Bitcoin mining companies and miners wanted to migrate from China mainland. What happened recent months looks odds but if government want to attack Bitcoin mining industry in the USA., Riot reasonably is one of their most favorite targets.

Because Riot is a second biggest Bitcoin mining company with a marketcap is about $3.07 B.
https://companiesmarketcap.com/bitcoin-mining/largest-bitcoin-mining-companies-by-marketcap/

[DaveF]

But, considering the number of lawsuits that have come against Riot over the years I guess it's just the way they run their business.

Over months since the last bull run, Texas is like a hub of Bitcoin mining companies and miners wanted to migrate from China mainland. What happened recent months looks odds but if government want to attack Bitcoin mining industry in the USA., Riot reasonably is one of their most favorite targets.

Because Riot is a second biggest Bitcoin mining company with a marketcap is about $3.07 B.
https://companiesmarketcap.com/bitcoin-mining/largest-bitcoin-mining-companies-by-marketcap/

This is not the government attacking Riot, this is other people dealing with Riot attacking them and Riot attacking other people.
$3 billion market cap is easy if you don't pay your bills and pump and dump.

As the saying goes where there is smoke there is fire. When you have places like bitdeer and foundry that don't have this kind of bad press we know it's not mining in general, it's just that miner.....

-Dave

[kryptqnick]

It's a legal battle that one side eventually lost, and since courts are relatively reasonable in the US, the decision was probably the right one (considering that multiple levels of courts decided that Riot was wrong). But then the side that lost (right?) involved private security to kick out employees of those who actually won, if I got it right. I think private security should not be used in cases like that, and as a civilian matter resolved in court, it doesn't need anything apart from the court's decision.
But the case is confusing to me and seems more like a quarrel of specific companies than any position regarding Bitcoin mining specifically. So I don't think it'll have wider impact.