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Bitmain faces $5 million lawsuit over alleged unauthorized crypto mining

Bitmain which is the crypto-currency giant is facing action against lawsuit of $5 million. The lawsuit alleges that the firm is doing unauthorized crypto mining.

On the 19th of November, Gor Gevorkyan who is the resident of the lead plaintiff Los Angeles County has filed a case against both the entities of Bitman, China based as well as United States based.

The law suit has been filed in California in the Northern District and it alleges that the devices of the firms have been using the resources of the customers so as to mine the cryptos for the benefit of it.

This was done before the complete setup.

Source: cdn.cryptopys

According to CoinDesk, the complaint that was filed read that before the procedures are completed which are very complicated and thus time consuming, the Application Specific Integrated Circuit devices of Bitmain are preconfigured in a manner so as to use the electricity of the customer in order to generate the cryto currency for the Bitmain instead of the customer.

The document also indicates that more than 100 class members are involved in this action.

The total amount that has been made which is still under debate is more than $5000000. This amount is exclusive of the costs as well as the interests and fees.

Source: i-invdn-com.akamaized

Gevorkyan stated that in January of the current year he had purchased the ASIC devices of Bitmain so as to mine bitcoin and because he encountered difficulties in configuring the devices so it took more time than usual for the instalment of the devices.

The complaint states that during this prolonged time prior to installation by Gevorkyan, the devices of ASIC had been pre configured so as to mine and thus deliver the crypto-currency to the defendents i.e. the company.

Source: CoinDesk, Investing

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Written by Ketakee Srivastava

I am an amateur content writer, who is currently pursuing a Masters in Finance from ICFAI Business School. In this highly volatile Business Market, I find no better way to keep myself updated than to write about it and reflect my own thoughts as words.

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