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Lawsuit against Montana crypto mining company over $3.7 million unpaid electricity bill sparks

Lawsuit against Montana crypto mining company over $3.7 million unpaid electricity bill sparks

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1 minute read

  • Project Spokane has been recently subpoenaed by Energy Keepers Inc., a tribal-owned electricity company. 
  • This comes for more than $3.7 million in unpaid power bills which the company has claimed that the debt is not their responsibility.

A mining company based in Montana known as project Spokane has been recently subpoenaed by Energy Keepers Inc., a tribal-owned electricity company. This is for more than $3.7 million in unpaid power bills which the company has claimed, the debt is not their responsibility.

Earlier this week on the 14th of December, project Spokane requested that a federal judge refuse the lawsuit claiming that Hyperblock LLC, a firm that had purchased most of the companies mining assets in 2018, are the ones who are responsible for the debt.

However, earlier this year in March, the company declared bankruptcy following the COVID-19 pandemic.

The lawsuit claims that the project utilised this deal with a Hyperblock LLC in order to conspire against paying the power provider for the electricity that it had used in the past.

The lawsuit goes on to highlight that the company had bought assets from the project for nearly $66 million despite the company only holding $11 million worth of assets. The complaint claims that this sum paid was excessive given the state of the accounts from the miner.

Furthermore, Spokane has gone on to claim that the terms of the deal with Hyperblock clearly moved the responsibility for its energy bill to Hyperblock.

The defendants have said:

“EKI approved the assignment of the contracts with its eyes wide open. For EKI to now allege that defendants used Hyper LLC to abuse the corporate form and perpetrate a fraud is disingenuous and patently false given that EKI was well aware of these same facts.”

Furthermore:

“Simply put, there is no evidence that either PS or Walsh used the corporate cloak of Hyper LLC to defeat public convenience, justify wrong, perpetrate fraud or defend crime.”

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