Crypto Miner Theft: NorthWay Mining faces Lawsuit over the Theft of 5000 Mining Machines
Another scandal is brewing in the cryptosphere and this time, it involves Northway Mining. New-York based Miner Hosting company, NorthWay has been accused of the theft of about 5100 pieces of mining rigs.
Currently, an investigation into the alleged theft is being carried out by the federal government of the United States, CNN reports. A joint lawsuit by MinedMap, Serenity Alpha, and Quebec Inc has fingered Michael Miranda, the CEO of NorthWay and 5 others in the theft of the Mining Machines.
Daniel Injoon Kim, a bitcoin farmer who is also a managing partner with Serenity Alpha and MinedMap is one of the victims of the theft. He lost approximately $1.4 million worth of a Bitcoin Mining equipment. He isn't the only Victim as Canada based Quebec, Inc from and Australian based BlockAssets are also victims of the theft.
According to reports by CNN, Northway Mining is being sued by 3 out of the four companies that are alleged victims of the theft. These companies include MinedMap, Serenity Alpha, and Quebec Inc, and they are all suing NorthWay Mining for the Violation of the RICO act.
According to the reports, MinedMap and Serenity Alpha had chosen Northway Mining to host its miners. The pending lawsuits revealed that the duo had wired funds of $162,000.00 for a deposit on the electrical cost its Miners would incur as at September 21, 2018. An additional $270,000.00 was also deposited for electrical costs a week later.
NorthWay was hired by MinedMap and Serenity Alpha to manage a new batch of their miners. Daniel Injoon Kim the managing partner of the two companies revealed the companies have over 5,000 operational Bitmain S9s, however, about 2800 Bitmain S9 miners which they sent to NorthWay Mining in September is yet to be accounted for.
Also, Québec Inc. requested that NorthWay returned its deposits which was a total of $93,826.17. According to Québec Inc., the Miners had not been plugged in this, it's deposits had not been spent on electrical power.
A video by Coindad revealed a criminal investigation by the US Marshals who entered the NorthWay Mining facility in Coxsackie to find 2,300 Bitmain S9 miners supposedly belonging to @danielikim empty.
EXCLUSIVE!@danielikim who is suing Northway Mining LLC in NY has just entered their facility with US Marshals to find 2,300 of his s9j @BITMAINtech boxes EMPTY.
Glad to see a victim actually going after someone like this to be made an example out of! #Bitcoin $btc #crypto pic.twitter.com/eHSugMDFhW
— TheCoinDad (@TheCoinDad) May 2, 2019
The problem, however, is that Bitmain have been unable to locate the miners even though they are brand new. As it, @danielikim has asked for people to help with the whereabouts of Michael Miranda.
— Mangomuncher (@danielikim) May 2, 2019
The story gets more complicated as Ultegra Financial, a commercial lending company also sues NorthWay claiming that it wasn't in on the scam. As it is, NorthWay still owes Ultegra Financial some money.
Daniel claims that his lawyers are on top of the situation. The lawsuit uses the RICO status and the plaintiffs lost about $1 million in Bitcoin mining revenue. Michael Maranda is yet to respond to the lawsuit. However, this is just the beginning of the case and more drama is yet to unfold.
What do you think about NorthWay's attitude to client's Mining Rigs? Share your thoughts with Us in the Comment section below.