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Bitmain Faces a $5 Million Lawsuit for Unauthorized Crypto mining

Of late, Bitmain, the dominated mining hardware manufacturer, has been involved into a $5 million lawsuit. According to Gor Gevokyan, a resident from Los Angeles, the bitcoin mining giant used customers resources to mine cryptocurrency.

According to NEWSBTC, the Northern California court has jurisdiction over this lawsuit as the amount of the plaintiff seeks in damages has exceeded $5 million, despite Bitmain Technology is a Beijing-based company.

Gevorkyan indicated that Bitmain was using his resources to mine cryptocurrencies for its own benefit through the ASIC devices he purchased from the firm in January 2018.

In ‘Factual Allegations’, the class action stated that Bitmain has modified the startup procedure for its ASIC mining devices to empower a full-power high-consumption mode in order to use its customers’ electricity and computing power to mine cryptocurrencies.

“The default account setting on the Bitmain ASIC devices is set to contribute to Bitmain’s own account on its own AntPool server. As a result of this new practice, Bitmain ASIC devices cost more to operate during the setup phase and transfer virtual currency to Defendant rather than the customers.”

Gevorkyan stated that he is on behalf of all the people in the USA that have purchased Bitmain ASIC devices to protect their rights. “Bitmain’s customers have been and are being harmed. Plaintiff and members of the class have suffered injury and actual out-of-pocket losses as a result of Defendant’s UCL ‘unfair prong’ violation.” Gevorkyan estimates that there are more than 100,000 victims which account for 0.03 percent of the total US population.Bitmain-Customer-Data-Hacked-1024x512-08-21-2017

In addition, Gevorkyan also required Bitmain to stop the unfair competition and “disgorge all monies, profits, and gains which it has obtained and will unjustly obtain at the expense” of its customers.

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