Bitmain Sued for Illicitly Utilizing Customers’ Equipment to Mine Cryptocurrencies

Bitcoin mining giant, Bitmain has been slapped with a $5 million lawsuit in California after it emerged that it was accused of using customers’ brand new equipment to mine cryptocurrencies for their own benefits, at the time when the customers were setting up their own equipment.

The case was filed on November 19, 2018, in Santa Clara County in northern California, as this is where Bitmain, Inc. lists its principal place of business.

The official court documents were quoted by Bitcoin Magazine as saying, “In the past, Bitmain ASIC devices could be configured and initialized in low-power mode that did not mine cryptocurrency for Bitmain. However, after Bitmain established itself as one of the world’s largest cryptocurrency miners in the last several years, defendant redesigned its ASIC devices to mine cryptocurrency for the benefit of itself rather than its customers who purchase the products. Conveniently, Bitmain cashes in on every second it takes…