Bitcoin Litigation

By now, many people in the developed world have heard of Bitcoins–the electronically traded virtual currency–which have been around for several years now; but litigation over Bitcoins is just this year starting to heat up.  For instance, earlier this year Mt.Gox, a Tokyo-based Bitcoin trading platform that facilitates the exchange of Bitcoins among individuals and businesses worldwide, sued Seattle-based Bitcoin exchange business CoinLab for around U.S.$5.3 million over their few-months-long partnership.  And CoinLab counterclaimed against Mt. Gox for US$75 million.  Aside from disagreements arising out of the electronic financial transactions in Bitcoin currency, many Bitcoin "miners" are feeling aggrieved over Bitcoin mining equipment manufacturers' costly delays.  Underlining the seriousness of even a short Bitcoin miner shipping delay is the technology's increasing difficulty nearly every two weeks.  That rapidly ascending difficulty equates to quickly diminishing returns for even the smallest delays.  And some delays of Bitcoin mining machine delivery has stretched to several months, causing Bitcoin mining entrepreneurs to lose out on their precious mining opportunity, often turning their opportunity to generate profits into a measly struggle just to break even on the equipment. One Bitcoin mining equipment manufacturer, BF Labs, Inc. (a/k/a Butterfly Labs), of Leawood, Kansas has been the subject of numerous such delayed-shipping complaints, including on its own customer forum.  User "deadmeat" alleged on Butterfly Labs' forum on December 14 that he might not be able to make his money back due to a December 9 delivery of a Bitcoin miner he ordered on July 1.  And user "g.aleksandrov" complained on Bitcointalk.org's forum on August 5 that he hadn't yet received a miner he ordered on May 20.  Although these are merely allegations by nearly-anonymous internet users, it's obvious there is at least a growing sentiment of dissatisfaction in the Bitcoin mining community.  Further complicating matters for these manufacturers are rumblings that the equipment, when delivered, doesn't perform to specification.  The Flynn Law firm has fielded inquiries from multiple consumers recently with these types of complaints.  As with any other legal endeavor, consumers with a potential claim against Bitcoin miner manufacturers must keep in mind several things in deciding what to do.  Most significantly, one must consider the lost opportunity to mine Bitcoins by delays in shipping the purchased equipment, or by the delivery of under-performing equipment.  Most Bitcoin mining entrepreneurs anticipate a specific rate of return based on the current difficulty, and fairly predictable near-term increasing difficulties, at the time of their purchases.  And their inability to mine the number of Bitcoins they anticipated, in the reasonably timely fashion they were right to expect, is at the heart of such claims against the manufacturers.  Then consider the fact that Bitcoin values have been increasing very quickly, and it's easy to see why even a few months' delay can mean major losses.  If you have ordered Bitcoin mining products and have had your shipment significantly delayed or have been provided a product that does not match the specifications of the order, contact us today to see if The Flynn Law Firm's experience in Bitcoin litigation can help you get the lost profits you're owed.

This entry was posted in Business and tagged , , , , . Bookmark the permalink.