GAW Miners, the often embroiled cloud mining and hardware production company, is presently facing a lawsuit in the Southern District of Mississippi, Eastern Division, in the amount of $346,647.29 “plus all pre- and post-judgment interest, costs, and attorneys’ fees.”
The lawsuit centers around GAW’s unpaid electric bills to Mississippi Power Company for their mining facility run in Purvis, MS. The power company alleges that in order to service GAW, they had to incur a number of unusual costs, such as new transformers and associated equipment. They further claim that GAW is in debt in excess of $340,000, and have failed to pay since January 27th, 2015, when GAW themselves requested the power be disconnected.
Breach of Contract
At issue is the fact that GAW had signed up for a minimum one-year contract, and for this alone they are demanding over $73,000 in damages for breach of contract. This is not unlike the way the phone company always gets its cancellation fee if you decide to end your service with them early, except on a larger, corporate scale. Though, in this case, the power company seems to have a much stronger case than any phone provider, which will generally just report you to the credit bureau for having a delinquent account if you don’t pay their fee – the power company says it can prove that it had to install new equipment specifically to power the facility.
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There is also the matter of GAW’s unpaid regular service balance of more than $220,000.
On the now-infamous HashTalk forums, Josh Garza made the following statement on the matter:
CCN will keep up with this story.
Images from Shutterstock and BitcoinTalk User wpstudio.