New York BTC Mining Giant Accused Of Stealing 5100 Pieces Of Equipment

New York BTC Mining giant Northway Mining is accused of stealing at least 5100 pieces of expensive mining equipment from two companies. The altcoin news that we have today, explain the current investigation by the federal government and according to their findings, the damage could be even bigger.

Northway Mining is sued by four bitcoin companies that were allegedly victimized and are yet to prove they have been damaged. Some of the companies that were victimized include MinedMap, BlockAssets and Serenity Alpha. One of them chose the New York BTC mining giant to host more than 2800 Bitmain S9 miners with more than half of its entire fleet. About 800 miners more were sent to the facility by the before mentioned companies.

As per MinedMap and Serenity Alpha, there are lawsuits being filed against Northway Mining. At the same time, the issue is being treated as a criminal investigation. The US Marshall Service has now searched the facility of the company in Coxsackie, New York. The pending lawsuits explain that the company has stolen about 3600 pieces of bitcoin mining equipment as well as $500,000 in cash.

Between the MinedMap and Serenity Alpha, they have more than 5,000 Bitmain S9 operational equipment and would have 50% more if they weren’t robbed by the New York BTC mining giant which they hired in the first place to manage the new batch of miners. The companies had miners shipped directly from Bitmain to the Northway Mining company and since then there is no sign of the equipment. One of the scenarios is that the company resold the equipment but this hasn’t been verified yet.

As today’s best cryptocurrency news sites report, the court documents show that the Northway Mining facility was unable to host 200 miners which enhances the fraud allegations. The miners which were brand new, allegedly could not be located and the companies are wondering why they cannot be connected directly to the Bitmain servers.

“We made a deal to have our miners hosted in their facility located 30 minutes south of Albany, NY. They lied to us continuously until the very end. We wanted to pull out the miners finally in February, he then says talk to our lawyer and as of today, May 2nd, 2019 they left our boxes, 1 miner, and have resold or hosted with other entities at 3rd party facilities,” the CTO of Mined Map Kim Injoon concluded.