Court Orders Nearly Half Million GPUs Returned to Mining Operator

The court order to return nearly half a million GPUs to the mining operator is significant for two reasons. First, it’s an example of how the law can be used to protect consumers from unfair practices. Second, it shows that gaming companies are beginning to understand that they need to be more transparent about their business practices and take responsibility for their actions.

A court ordered that a mining operator return nearly half a million graphics cards to its customers.

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In a surprising decision, China’s Supreme People’s Court gave a bitcoin mining company its equipment back, ordering almost half a million (485,681) MSI RX470 8 GB graphics cards to be returned to Genesis Mining. The issue arises from a collaboration between Genesis Mining and Chuangshiji Technology Limited, a hosting provider. After accusing GM of failing to pay its part of the electricity expenses, CTL put its side of the agreement on hold in 2018.

In 2019, General Motors filed a lawsuit seeking the recovery of 560,000 GPUs and 60,580 AntMiner S9 Bitcoin ASIC miners. It accused CTL of theft and started liquidating its assets. Following an appeal, a decision in 2020 ordered that the remaining equipment be returned to GM, which was now operating in a number of different locations. CTL attempted to submit fresh evidence, but the court upheld its ruling, stating that CTL had failed to establish that the partnership was more than a contractual commercial relationship.

Based on current Ethereum pricing, the equipment has a 14 TH/s hash rate on the Ethash algorithm, which could produce $1 million in income each day. However, owing to China’s new crackdown on bitcoin, GM may need to compensate the equipment or move it. Should GM decide to exit the mining industry, the GPUs have a significant resale value of up to $200 million.

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Chuangshiji failed to offer any fresh evidence to support its allegation that its connection with Genesis Mining constituted an equity- and profit-sharing joint venture, according to the Supreme Court. The court, on the other hand, felt it was a clear case of a contractual commercial connection.

As a result, the court decided that both Genesis Mining and Chuangshiji should be able to end the partnership at any moment. According to the ruling, Genesis Mining had the right to seek the return of its equipment that was still operational and in excellent physical condition after the termination.

The Block (through Tom’s Hardware) is the source of this information.