Compass Mining sued for losing Bitcoin mining machines purchased by customers.

After the company severed ties with Russian hosting company BitRiver and failed to return users’ Bitcoin machines, citing inapplicable United States approval as the reason, users Compass Mining are suing for more than $2 million.

According to the court document filed On January 17, Compass Mining issued a notice in April 2022 that it had terminated its “relationship and dealings with Butte River” due to the sanctions. Enacted by Executive Order 14024.

It is alleged that Compass “did not offer” to return or acquire assets hosted at Butte River facilities in Russia.

However, it said it was “false” that the return of the mining machines would violate Executive Order 14024, which prohibits transactions with sanctioned entities.

The court document noted that Compass has “both the right and responsibility to influence the returns of its customers’ miners.”

Compass representatives met customers’ concerns with hostility, saying it was “unable to perform or facilitate” any of these. Business dealings along the Butte River.

When its customers had no choice but to contact Butte River, the Russian firm reportedly pointed them to Compass. Butte River representatives responded to those reached:

“From a legal standpoint, Butte River’s contract is with Compass, and all equipment is owned by Compass. As such, you must resolve all questions directly with Compass.

The court document stated that Compass should have disclosed to Butte River that they were “merely the middleman” and that the machines were paid for and owned by the plaintiffs themselves.

The partnership with BitRiver was originally intended to enable Compass users to host their machines at BitRiver’s facilities to take advantage of “enterprise-grade, low-cost and low-carbon cryptocurrency mining facilities in Russia.” was

Related: For foreign trade only: Bank of Russia stands against free crypto investment.

The court document added that Compass’ promise of “95% uptime” for its machines was false, stating that it was actually “closer to 50-60%.” In some instances, miners were not online at all for weeks or months at a time.

In July 2022, Compass was the first mining firm. Job cuts announced Amid the ongoing crypto winter. The firm laid off 15 percent of its workforce, while top executives and staff took big pay cuts.