Mintvest Capital has filed an amended complaint against Energy & Compute, LLC, formerly Coinmint, alleging that chief executive Ashton Soniat misappropriated bitcoin produced by the company’s mining operations. The filing also makes broader allegations of securities fraud and violations under the Racketeer Influenced and Corrupt Organizations Act, or RICO.
Complaint says startup dates were misstated to investors
According to the complaint, each time new machines were added, Soniat told investors that production began later than it actually did. During the periods between the real startup date and the date announced to investors, the suit says all BTC produced by Coinmint was redirected to Soniat’s personal bitcoin wallet.
The complaint alleges that 448.7193 BTC was taken in total. It also says Soniat extended these testing periods for weeks or months, allowing him to keep proceeds that should have been distributed.
Mintvest alleges failures in financial reporting and recordkeeping
The suit says Coinmint was unable to provide financial reporting to investors. It describes that as part of a systematic failure to maintain proper financial records, one that appears deliberate and was designed to hide self-dealing transactions and prevent outside oversight.
Mintvest, described as an equity holder in Coinmint, claims the company has generated profits exceeding $570 million. Based on its 18.2% equity stake, Mintvest argues it is entitled to about $104 million.
NYDIG acquisition is also challenged in the filing
The amended complaint also alleges that when New York Digital Investment Group, or NYDIG, acquired Coinmint, Mintvest was not compensated as provided for under the agreement and plan of merger.
Mintvest argues that this effectively meant NYDIG was working to exclude it from its ownership stake in Coinmint.
Damages sought include at least $104 million and $47.1 million
In its prayer for relief, Mintvest asks for at least $104 million in compensatory damages tied to what it says are withheld profits. It also seeks at least $47.1 million in compensatory damages related to the allegedly stolen BTC, along with other punitive and statutory damages.
This amended complaint is tied to an earlier suit that had been dismissed without prejudice.
Coinmint has faced other legal disputes before
The report notes that Coinmint has previously been involved in other legal disputes, including a suit against Katena Computing and DX Corr related to a $150 million purchase of bitcoin mining rigs.
Protos said it had reached out to NYDIG for comment and would update its report if it receives a response.