Rhodium Owes $26 Million to Riot Enterprises; Riot Files Lawsuit
- Riot Platforms filed a lawsuit against Rhodium Enterprises claiming that the latter has failed to pay $26 million.
- Rhodium has been using Whinstone’s mining facilities since 2021 but didn’t pay the service fees.
- Though Riot has asked Rhodium to pay the fees twice before, the latter refused to pay.
Riot Platforms (RIOT), the mining company formerly known as Riot Blockchain (NASDAQ:), filed a lawsuit against the Texas-based digital asset technology company Rhodium Enterprises, alleging that the latter “deliberately miscalculated” the amount it owes to RIOT.
In the Q1 2023 financial report of Riot Platforms released on May 10, the company pointed out that Rhodium Enterprises has failed to pay an amount of $26 million regarding the hosting and service fees of Bitcoin mining facilities. The report stated that though Rhodium Enterprises has been utilizing the mining facilities of the Riot subsidiary, Whinstone, from 2021 to the first quarter of 2023, it hasn’t paid any amount.
According to the petition filed by the company on May 2, in the District Court of Milam County in Texas, Rhodium Enterprises owes “more than $26 million”. In addition, RIOT has also asked for reimbursement for legal fees in order to proceed with the legal actions.
The quarterly report gave a short description of the petition filed, asserting that “certain hosting agreements” with Rhodium have been terminated. The report stated:
In the amended petition, Whinstone asserts breach of contract claims for Rhodium’s failure to pay certain hosting and service fees under certain hosting agreements and seeks a declaration that certain hosting agreements with Rhodium are terminated and that no power credits are owed to Rhodium under any agreement.
Further, Whinstone claimed that though the platform tried to get the amount submitted by Rhodium in May 2022, and later in April 2023, Rhodium refused to make the payment, finally forcing Riot to file the lawsuit.
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This story originally appeared on Investing