cryptopolitan.com
Crypto technology firm Katena Computing has received a favorable ruling from a panel of arbitrators in its ongoing legal battle with crypto mining company Coinmint. The ongoing tussle between the two firms is centered around a purchase agreement worth $150 million. Mining firm Coinmint alleged that the tech firm and DX Corr deceived it into purchasing Bitcoin mining machines that were never delivered. However, the panel of arbitration has ruled that Katena did not deceive the crypto-mining firm, awarding the technology company over $14 million.
Katena receives a favorable ruling in its lawsuit against Coinmint
The lawsuit, filed by Coinmint last year, accused the tech firm of using bribery and other means to influence its chief financial officer Michael Maloney into securing the sale of the mining machines. Despite laying the allegations, the panel said it found insufficient evidence to support the deception or wrongdoing claims made by Coinmint against the tech firm. Instead, the panel noted that Coinmint and its executives chose to inflate the price from the initially agreed $100 million to $150 million without any influence from Katena.
Furthermore, the panel noted that Katena had not breached any of the agreements in the contracts that it made with Coinmint. The panel said that Coinmint failed to meet all the necessary criteria for the purchase. It also noted that there was no misinterpretation on the part of Katena about the condition of the chip used for mining machines that it was currently developing.
During the arbitration process, the tech firm provided the panel with extensive evidence ranging from technical plans to due diligence reports. It also provided evidence to show its active efforts to manufacture the chip and miners that were to be delivered to Coinmint. The evidence provided by Katena contradicted Coinmint’s claims that the technology firm did not deliver the machines.
Panel’s ruling and implication
Founder and partner at Katena, Michael Gao highlighted the thorough discovery process where Katena provided all the materials that were required. He also noted that Coinmint’s compliance during the process was a little underwhelming. Gao said that Coinmint was unable to substantiate its claims against Katena, which was evidenced by the ruling of the panel.
The ruling of the arbitration panel is key as it absolves Katena of any wrongdoing and affirms its commitment to fulfilling all the obligations set out in the contract. It also underscores the importance of carrying out due diligence and the need for clear communication when drafting business agreements, especially involving transactions with high volumes like the one between Coinmint and Katena.
The panel’s ruling will also act as a precedent for a fair and objective resolution of disputes in the crypto sector where trust and transparency are needed. It also highlights the complexities and challenges that can emanate from business transactions in moving technology firms in the blockchain and mining industry.