Antminer user claims Bitmain’s been using customer devices to mine crypto for itself, according to a recent lawsuit
A lawsuit has been filed against a crypto mining company Bitmain, for allegedly using some customer devices to mine bitcoin for its own gain.
Back in January, Gor Gevorkyan of Los Angeles, the plaintiff – had purchased a device called Antminer s9 which was manufactured by Bitmain. According to Gor, the company took advantage of the device’s initialization phase to mine bitcoin for its own gain, without the consent of the user.
Although, it is known that mining power is usually lower during the initialization phase, so it’s uncertain how widespread this issue is.
Blockchain lawyer Nelson M Rosario when commenting about the case “If these allegations are true (and we are not saying that they are) … that’s, that’s not good.”
He also said. “Even under some sort of theory that customers agreed to this under the terms & conditions of their purchase, or something like that, this is not a good look regardless of its legality. With respect to its legality, the plaintiff is alleging unfair business practices, unjust enrichment (receiving a benefit at someone else’s expense), and conversion (basically stealing).”
No matter what the case may be, Gor’s suit needs to be taken to court, during that time Bitmain will also have the opportunity to respond. The lawsuit is said to be brought by Robert Starr and Frontier Law Center.
If there is succesful prosecution of the suit, Gevorkyan and theoretically anyone who directly purchased a Bitmain miner within the timeframe specified would be able to claim damages.