Customer Accuses Blockware Solutions of Fraud

A client filed a complaint against Blockware Solutions, a company that provides bitcoin mining equipment, alleging breach of contract, carelessness, dishonest business practices, and fraud.

The claim that Blockware sold Faes & Co. 50 mining rigs for $525,000 is at the root cause of the action, which was initiated on December 17 in U.S. federal court for the Northern District of Illinois. 

Faes states in the fillings, “Blockware did not actually own or operate a facility to host the miners and was not capable of doing so reliably.”   

According to Faes, there is a loss of at least $250,000. Faes says: 

“As a result, Faes’ miners under Blockware’s management and control have experienced prolonged downtime and inoperability due to lack of power, resulting in significant loss of revenue.”

Blockware’s Rigs Started Operating in April

When bitcoin mining was incredibly successful during a bull market in January, London-based Faes claimed to have ordered the machines to be shipped and maintained in Blockware’s own premises. 

Faes claimed that the rigs didn’t start operating until April. Additionally, Since October, the machines had an average uptime of 70% rather than the claimed 100%.

Faes argues that operational problems began as soon as the systems were online and that they ultimately became “nonoperational” in October. 

Prior to the machines being offline, Blockware was advertising 100% availability on a 90-day status page, as well as for a site in Pennsylvania, where Faes’ rigs were usually not running, according to the lawsuit.

Mason Japp, Blockware’s CEO, told CoinDesk: 

“We are confident it will be tossed out from the court, we have honestly served this industry for over 5.5 years and this has been [the] first filed lawsuit against us.”

Meanwhile, there was a deal in September this year related to purchasing mining machines in which CleanSpark, a bitcoin miner acquired 10,000 Mining Devices at Discount.