An amended complaint filed by Mintvest Capital against Energy & Compute, LLC (formerly Coinmint) alleges that the firm’s chief exec, Ashton Soniat, misappropriated $BTC from the firm’s mining operations.
It also broadly alleges securities fraud and Racketeer Influenced and Corrupt Organizations Act (RICO) offences.
Specifically, the lawsuit claims that “on each occasion when new machines were added, Mr. Soniat told investors that production started on a later date than it actually did.”
“During the gap periods — between the actual start up and the announced startup — Mr. Soniat redirected all $BTC Coinmint produced to his personal $BTC wallet.”
The lawsuit alleges that, in total, “Mr. Soniat stole… 448.7193 $BTC.”
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To increase his take, Soniat allegedly “extended these ‘testing’ periods for weeks or months, taking all proceeds that should have been distributed.”
The suit further alleges that Coinmint was unable to provide financial reporting to investors, a pattern it claims is related to a “systematic failure to maintain proper financial records” that “appears deliberate, designed to obscure self-dealing transactions and prevent outside oversight.”
Mintvest, an equity holder in Coinmint, claims that Coinmint “has generated profits exceeding $570 million” and argues its 18.2% equity holding means that it’s entitled to $104 million.
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Furthermore, the suit alleges that when New York Digital Investment Group (NYDIG), another named defendant, acquired Coinmint, it “did not compensate Mintvest as the agreement and plan of merger provides.”
This would effectively mean that NYDIG was working to exclude Mintvest from its ownership stake in Coinmint.
Mintvest, in its prayer for relief, requests “compensatory damages of at least $104 million,” representing what it claims are withheld profits, as well as “compensatory damages of at least $47.1 million for the $BTC stolen,” as well as other punitive and statutory damages.
This amended complaint is related to an earlier suit that had been dismissed without prejudice.
Coinmint has previously been engaged in other legal disputes, including a suit against Katena Computing and DX Corr related to a $150 million purchase of $BTC mining rigs.
Protos has reached out to NYDIG for comment and will update this piece if we hear back.
