CDS Crypto News Rhodium Was Accused Of Owing $26 Million In Hosting Fees
Crypto News

Rhodium Was Accused Of Owing $26 Million In Hosting Fees

Whinstone US, a company owned by Bitcoin miner Riot Blockchain, has filed a lawsuit against Rhodium Enterprises, a fellow miner, claiming that Rhodium owes them $26 million in hosting fees. The lawsuit also seeks a court ruling that would confirm that Whinstone US does not owe any demand response program credits to Rhodium Enterprises.

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Rhodium Was Accused Of Owing $26 Million In Hosting Fees

Whinstone US, a subsidiary of cryptocurrency miner Riot, claims Rhodium owes it $26 million in hosting costs.

Rhodium Was Accused Of Owing $26 Million In Hosting Fees

Rhodium Was Accused Of Owing $26 Million In Hosting Fees

Bitcoin mining firm, Riot Platforms, has taken legal action against fellow miner, Rhodium Enterprises, for breach of contract. According to Riot Platform’s Q1 2023 financial report, R.E failed to pay hosting and service costs related to the usage of Whinstone’s Bitcoin mining facilities, a fully owned subsidiary of Riot. The lawsuit was filed on May 2 in the district court of Milam County, Texas, and names four of company’s subsidiaries as defendants.

Rhodium Was Accused Of Owing $26 Million In Hosting Fees

Riot Platforms claims that Rhodium intentionally overestimated the amount it had to pay in hosting costs for Riot’s services. The two companies were supposed to split the net income from company’s mining at the Whinstone facilities, but according to the complaint, Rhodium cheated Whinstone out of $26 million between 2021 and Q1 2023.

Riot Platforms also alleges that Rhodium’s businesses amassed power credits on their books that they did not possess for two years and wants the court to determine that it owes no power credits to company.

Rhodium Was Accused Of Owing $26 Million In Hosting Fees

Whinstone attempted to collect the payments in May 2022 and on April 5, but company’s businesses refused or did not pay, prompting the complaint. The corporation was served on May 8 and has until May 30 to respond.

Riot Platforms reported that it mined 2,115 Bitcoins in Q1 2023, a 50.5% increase over Q1 2022. However, it expects crypto mining companies to face new challenges in 2023 due to the severe price decrease of Bitcoin and other national and global macroeconomic variables.

To access more crypto news: cryptodataspace.com

Written by
Aziz KARTAL

Aziz Kartal is 21 years old. He is a student at the Gazi University, Department of Electrical and Electronical Engineering. He works as content writer, researcher and social media manager. He generally research about Web3, Blockchain Security and Cybersecurity.

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