Crypto mining firm Riot Platforms – formerly Riot Blockchain – has taken legal action against Texas-based Bitcoin (BTC) miner, Rhodium Enterprises, in an effort to recover “more than $26 million” in alleged unpaid mining facility fees.
According to Riot Platform’s Q1 2023 financial report published on May 10, Rhodium Enterprises allegedly breached its contract with Riot by failing to pay hosting and service fees associated with the use of Whinstone’s Bitcoin mining facilities, a wholly owned subsidiary of Riot.
A petition was filed against Rhodium Enterprises on May 2 in the District Court of Milam County in Texas, seeking to recover “more than $26 million,” as well as reimbursement for legal fees incurred during the legal proceedings.
Riot further requested that “certain hosting agreements” are terminated and proposed that it is exempt from repaying any outstanding power credits to Rhodium.
It was acknowledged that estimating “the likelihood” of recovering the unpaid fees at this stage is uncertain. It noted:
“Because this litigation is still at this early stage, we cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any.”
Rhodium was served on May 8, and have a deadline to respond…
