Crypto mining company, UnitedCorp’s lawsuit against Bitmain, Kraken, Roger Ver and others has finally been dropped, more than two years after being filed.
After several appeals, a Florida judge finally dropped the case in which the defendants were alleged to have colluded during the Bitcoin ‘hash wars’, which UnitedCorp claim had crashed the BCH price and crushed their mining rewards.
The lawsuit claimed the defendants had broken several anti-trust laws, including the Sherman Act and the Clayton Act, as well as showing negligence, negligent misrepresentation, unjust enrichment, and conversion.
Hash War Collusion Case Dismissed
However after several appeals, court documents show that U.S. Magistrate Judge Chris McAliley dismissed the case for a lack of jurisdiction and a failure to actually state a claim.
Law firm O’Melveny, which represented Roger Ver and other individuals named in the lawsuit, claim that the dismissal came after nearly four hours of arguments the week before.
O’Melveny called the trial a ‘first-of-its-kind’ in the U.S. as it was the first anti-trust case filed in a crypto related lawsuit.
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The Hash War Collusion
In total, UnitedCorp accused nine defendants of collusion during the hash wars, which took place after the BCH hardfork on 15th November 2018, which the two forks named: Bitcoin Cash ABC and Bitcoin Cash SV were vying for the longest chain.
UnitedCorp asserted that the defendants colluded to take control of Bitcoin Cash for personal gain.
Bitmain’s CEO at the time Jihan Wu, sided with Roger Ver and the ABC chain. His international mining conglomerate deployed 90,000 S9 Antminers just days before the fork to help ‘manipulate’ the outcome.
The hash war went on for almost 12 days and finally ended after Roger Ver and his mining pool Bitcoin .com increased their hashrate to support the ABC chain.
The result finally came to a conclusion when crypto exchange, Kraken, who never gave any support to Bitcoin SV, awarded the BCH ticker to the Bitcoin Cash ABC chain at the time.
Both Bitmain and Bitcoin .com both withdrew hashing power immediately after Bitcoin Cash were awarded the rights, and this led to a dramatic 50% fall in BCH price and ultimately a massive drop in UnitedCorp’s mining revenue.
The Florida-based mining company claims the prolonged hash war and crash in price caused “irreparable damage” to the company and its stakeholders, and was adamant the defendants were at fault.
The case might have been dropped but United Corp still have until have until the end of February to submit an amended complaint.
Author: Tommy Limpitlaw