SBI Crypto Sues Whinstone US Over Alleged Contract Violations in Mining Deal

Crypto mining company SBI Crypto has filed a lawsuit against mining energy provider Whinstone US, alleging violations of their 2019 agreement terms. The lawsuit, filed in the US District Court for the Western District of Texas, claims that Whinstone US misled SBI Crypto by stating that building permits and electricity contracts were not necessary to fulfill part of the hosting services contract.

Furthermore, the lawsuit accuses Whinstone US of failing to deliver 20,000 promised ASIC miners to the site and allegedly repairing the installed machines in bad faith. SBI Crypto is accusing the provider of “fraudulent inducement of contract,” inadequate service, misrepresentation, and other violations, arguing that the provider’s actions did not conform to industry standards.

Riot Platforms, a Nasdaq-listed company, agreed to purchase Whinstone US in April 2021. One year later, the mining company announced a 1 GW expansion of Bitcoin mining capacity in Texas.