Customer Sues Blockware Solutions: FRAUD – 232

Bitcoin mining equipment and hosting Provider blockware Solutions has accused Or was accused by a customer in a Lawsuit of breach of contract Negligence and or deceptive trade Practices and fraud the case filed in U.S federal court in the northern District of Illinois on December 17th Centers around an allegation that block Ware sold faes and Company or phase and Company fees and Company phase and Company I think 50 mining rigs for 525 Thousand dollars They said in the lawsuit quote blockware Did not actually own or operate a Facility to host the miners and was not Capable of doing so reliably Also the facilities owned by Third Parties that blockware could tap didn't Have reliable power resulting in subpar Service according to the suit as a Result phase miners under block Ware's Management and control have experienced Prolonged downtime in Inoperability due to lack of power Resulting in significant loss of Revenue Phase argued they said it had suffered At least 250 000 of Damages London-based phase said it ordered the Machines to be delivered and hosted in Blockware's own facilities in January When Bitcoin mining was highly Profitable amid a bull market the rigs Only came online in April face said the

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Mining machines were running with 70 Uptime on average as of October as Opposed to the advertised 100 percent They said Operational issues according to phase Started as soon as the machines were Online which eventually became Non-operational in October prior to the Machines going offline blockware was Claiming 100 uptime on a 90-day status Page including for a facility in Pennsylvania where phase rigs were Located often not working according to The lawsuit in response blockware CEO Madison Jeff said quote we disagree with All statements and claims made by Christian FaZe he attempted to coerce us To settle with him and we believe we owe Him zero dollars in fact we will be Counter suing him for defamation among Other stipulations we had a signed Non-disclosure agreement on file we have A very strong case his filing has Baseless false claims and are and after Filing he still offered to drop the case If we settled once again coercion Coercion oh man We believe the main reason for filing Was the value of his rigs dropped in Price and he has harassed us with his Personal threats weekly via text and Other Communications until fulfilling The lawsuit we are confident it will be Tossed out from the court we have

Honestly served this industry for over Five and a half years and and this has Been first file the first lawsuit filed Against us So many things to really unpack here for Me personally right so if you guys Aren't aware like I did extremely well On YouTube as well as extremely well in Mining um the thing that I did and Decided to do very early on Um was not expand with the revenue or The investment of other individuals well That means I didn't make as much money And it also means that I have to work a Day job through the bear market and that Sort of thing what it also means is I Don't have to deal with this BS I own All of my equipment and I purchased it Outside of a bull run so it didn't cost Me that much and yes I made some Mistakes here and there but those Mistakes are mine solely I can accept The responsibility for it and I don't Have to answer to anybody else in General the fact of the matter is like Blockware is being Devoid of empathy in this particular Situation in addition to that they prey On individuals with the Bull Run Hardware Resellers as well as the initial Manufacturers like bitmain right uh and Likewise minor and then of course the Resellers even going through ones like

The sponsors for this channel right Um like BT miners what you will see is a Position in a bull run where the price Of the unit is 600 percent of over Whatever like manufacturing or Traditional retail cost is right and Then you get to a bear market and you Start to realize true cost of these Machines as they go as low as they Possibly can as close to the building as Close to the profit margins as they can And you start to say that like obviously You didn't have to increase your prices To that extent right putting undue Pressure on individuals and preying on Their basically on On their lack of knowledge that's what You're doing in this particular case So I can see individuals like phase Getting extremely upset and then if any Of the accusations are true and he they Have not maintained a hundred percent Uptime then of course you're going to be Extra upset surrounding this now when You are in a financially compromised Position you are also probably wanting To settle out of court so that you do Not have as many lawyer fees right this Is par for the course Unfortunately like there will not be Much empathy in a bear Market in the Crypto industry right blockware is at Least the second retail-facing Mining Company to be accused of operational

Problems this year in July both the CEO And Chief Financial Officer of compass Mining resigned following a series Of setbacks and disappointments such as Delays in machine deployment deploying Machines and several thousand rigs being Stranded in Russia following sanctions On its hosting partner in that country Meanwhile major industrial scale miners Such as compute North and core Scientific have found themselves in Bankruptcy proceedings squeezed between High Energy prices and low Bitcoin Prices along with basically just frankly Being too greedy and buying too many Mining rigs at too high of a price this Is kind of the funny thing that happens Here with the cycle that continues to Happen it's almost as if Satoshi knew this would happen which is Extremely interesting if you start to Get into that kind of like economic Discussion where There's economies of scale right so how Do you break down economies of scale to Ensure that you don't have a situation Where the rich get richer and the poor Get poorer well you could have some sort Of emission schedule that completely Jacks with it right and to a certain Extent it does appear that that Bitcoin Does this it's kind of funny Um What whether it's by Design I I don't

Think so I do think it's probably by and Large and An accident right but It is funny to see Um to a certain extent right it's almost Like you start to see the failure of Economies of scale Due to the greed right Um Now Speaking of greed we go back to that Kind of argument for supporting dag Knight and then you're like If you support a project like that do They lean more into the greed the VC Funding and stuff like that or do they Lean more towards satoshi's Vision Thanks for checking out this clip from The crypto mining show you can check out The full episode here or more crypto Content down here also I'd like you to Check out my locals page at son of a Tech.locals.com where you can become a Member for free or choose to be a five Dollar a month supporter that unlocks Additional content

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