$28M Legal Battle: Adam Back and Blockstream vs. Innosilicon

Adam Back and Blockstream filed suit seeking $28M from Chinese chipmaker Innosilicon. The complaint alleges that delivered ASIC devices were defective due to cracked chips, yet continued shipping to clients. Case documents indicate that the flaw was discovered as early as spring 2018, but the supplier took no corrective action.

A Hong Kong arbitration panel has already ruled in the plaintiffs’ favor, ordering Innosilicon to pay damages. However, Blockstream representatives say the defendant has not remitted any funds, prompting them to pursue enforcement in a U.S. court. Lawyers argue this matter sets a precedent for stricter quality control in crypto hardware.

Industry observers predict prolonged litigation due to international procedures. Nonetheless, a plaintiff victory could make it riskier to distribute flawed devices without disclosure.