This court document from the Southern District of Mississippi Court System, shows that Mississippi Power Company (MPC) is suing GAW Miners for upwards of $350,000 for failure to make payment for services provided. According to the court document the two parties reached an agreement on September 29, 2014 for the services.
The agreement was that MPC would provide power to GAW in a unique way that required MPC to “invest in the purchase of certain transformers and incur the cost of installing such transformers.” Nonetheless, the court document also reveals that this cost was $49,335.20 to install, not including the equipment costs.
Bitcoin mining indeed needs a lot of power and according to the released court document as the two parties entered into an agreement the electric service started on October 15, 2014 i.e. within two weeks of time. However, GAW has only made one payment to MPC despite receiving monthly payments from the power company.
As GAW was not able to pay regular payments, MPC cut power to the facility on January 27, 2015. However, the issue did not end there as even till now the company has not received the full payment. MPC claims and wants from the court that it awards it the cost of the remaining eight months on the contract plus the cost of installing the unique transformers.
MPC is asking for $346,647.29
The company claims that eight months on the contract plus the cost of installing the unique transformers is $73,493.48. At the same time MPC also wants GAW to pay the $223,818.61 that was owed to the power company at the time power was cut off to the facility. In total, MPC is asking for $346,647.29 that does not include interest, costs, and any attorney’s fees.
This definitely is rough time for GAW Miners because though MPC provided a service that it never paid for and in due course MPC has suffered certain damages that they believe should be recoverable. GAW Miners’ issues don’t stop here as even the Securities and Exchange Commission have opened an investigation into its owner, Josh Garza.
Nonetheless, while the SEC has not yet drafted any enforcement action, there are over 1,000 pages of investigation. Thus, with this lawsuit, it appears that GAW and Garza have a long uphill legal battle ahead of them with the government and the utilities all looking for a piece. Will the Bitcoin mining company be able to stand the tough time has yet to be seen.
To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com
The agreement was that MPC would provide power to GAW in a unique way that required MPC to “invest in the purchase of certain […]
