Two firms in the cryptocurrency space are at legal loggerheads regarding millions of dollars in purportedly unpaid invoices.
On September 30, 2019, the London-based payments company Digital Capital sued Genesis Mining over allegedly failing to pay 2.4 million pounds (roughly $3.1 million) in unpaid invoices for its development and maintenance of its credit card software.
Now, Genesis Mining Iceland has argued in a court hearing that Digital Capital failed to deliver software with capabilities beyond “peripheral functionality,” Law360 reports on March 9.
The legal proceedings relate to a now-dissolved partnership between the two firms to launch a cryptocurrency debit card platform in 2018.
Genesis initiates counter-suit against Digital Capital
According to Digital Capital, Genesis decided to stop making payments from November 2018 after it began to experience financial difficulties as a result of the 2018 bear market — which saw the price of Bitcoin (BTC) plummet 84% from nearly $20,000 to $3,200.
The firm claimed that Genesis’ decision to renege on the deal resulted in a 2.4 million pounds in debt, and future lost profits likely lasting until 2022. Digital Capital sought 6 million pounds (roughly $7.8 million) in damages.
Genesis responded by launching a counter-suit against the payments firm late-last year, seeking to recuperate the money that it had paid to Digital Capital for the platform that it ultimately failed to provide.
In defense, Digital Capital claimed that the project’s delays were caused by Genesis’ failure to provide requisite technical documentation.
Genesis Mining co-founder launches Layer1
Genesis Mining was co-founded in 2013 by Jakov Dolic.
Dolic recently co-founded Layer1 — an ambitious U.S.-based mining company that plans to repatriate 30% of Bitcoin hash power by 2022.
Layer1 commenced operations during February, bringing multiple 2.5-megawatt shipping container farms online at its flagship facility in western Texas. The Texas substation was acquired by the company following a $50 million fundraising round led by Peter Thiel in October 2019.