US Mining Firm Accuses Hosting Provider of Hashrate Theft

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Cryptocurrency mining company Consensus Colocation has secured a temporary court injunction in the state of Delaware against its hosting provider Mawson, which allegedly blocked access to mining equipment due to billing disputes.

The case involves 21,000 mining rigs worth $30 million, which Consensus leases from Stone Ridge Ventures and operates at a facility in Midland, Pennsylvania.

The dispute between the miner and the data center owner escalated over unpaid rewards, contract terms, and relocation plans.

According to Consensus, Mawson blocked staff access to ASIC devices both physically and via VPN. Additionally, since February 28, Mawson allegedly began using the equipment for its own benefit, generating between $100,000 and $200,000 per day.

Mawson claims that its contract with Consensus allows it to redirect hashrate under certain conditions. However, a court ruling states that until a preliminary hearing, Mawson cannot restrict access to the equipment or use the hashrate.

The companies had planned to end their collaboration by March 2025, with a gradual phase-out of operations.

Mawson insists that Consensus failed to pay for electricity for February and March and also owes commission fees.

Consensus’ legal team argues that Mawson unlawfully used hashrate worth significantly more than the $17,505.45 it is demanding as overdue payment.

Previously, in September 2024, Bitfarms and Riot Platforms reached a settlement restricting Riot from acquiring more than 20% of its competitor’s shares without board approval.