The Bitemin cryptocurrency giant is facing a collective lawsuit for over $ 5 million that supports the unauthorized extraction of cryptocurrencies by the company.
On November 19, Gor Gevorkyan, a resident of Los Angeles County, filed a lawsuit against the Chinese and American entities of Bitmain in the federal court of the Northern District of California, claiming that the devices of the company use the resources of customers for extract the encrypted for its advantage before complete configuration.
"Until the completion of the complicated and long initialization procedures, the Bitmain ASIC [Application-Specific Integrated Circuit] The devices are pre-configured to use their customers' electricity to generate cryptocurrency for the benefit of Bitmain rather than its customers, "recites the claim submitted by CoinDesk.
The document indicates that there are more than 100 class members involved in the action and that the aggregate amount under discussion "exceeds $ 5,000,000, excluding interest, commissions and costs".
Gevorkyan said he purchased Bitmain ASIC devices, including AntMiner S9, in January this year to extract bitcoins. However, he had to face difficulties in configuring the devices and it took some time to install them.
"During this time, ASIC devices were pre-configured to extract and deliver the cryptographic currency to Defend Even during this time, ASIC devices were operating in full power mode, consuming a significant amount of electricity at the expense of the actors," complaint.
He also adds that this "improper business practice" by Bitmain continued until the ASIC devices were connected to Gevorkyan's personal cryptocurrency account.
As a result, Gevorkyan and other members are seeking "the complete return of all expenses incurred as a result of the unfair and deceptive practices of Bitmain" and an order requiring Bitmain to "cease the acts of alleged unfair competition", as well as Interest at the maximum rate allowed and other fees and costs.
In summary, the complaint said:
"Conveniently, Bitmain collects every second needed to get the ASIC configured with customer specifications and places the substantial costs of operating ASIC devices at the feet of its customers."
CoinDesk has contacted Bitmain for the complaint and will update this article in case of a reply.
At the beginning of this month, Bitmain himself filed a lawsuit against an anonymous thief in a United States federal court that allegedly stole 617 bitcoins from an account that holds Binance cryptocurrency.
Image of gavel and bitcoin through Shutterstock