GAW Miners Absent in Ongoing Mississippi Court Case

NEWS
Stan Higgins
Jun 18, 2015 at 21:57 UTC  |  Updated  Jun 19, 2015 at 22:21 UTC

UPDATE (19th June 21:00 BST): This report has been updated with comment from Mississippi Power Company.


Power lineA utility firm in Mississippi is seeking a default judgment against cryptocurrency mining company GAW Miners months after filing suit for breach of contract.

Mississippi Power Company (MPC) said in a 17th April filing submitted to the US District Court of Southern Mississippi that it was entitled to a default judgment in its favor owing to a lack of response from GAW.

MPC is seeking $346,647.29 in damages plus interest. MPC began offering services to GAW in October of last year, providing electricity to its Mississippi-based data center.

The company, which is being represented by Gulfport-based law firm Balch & Bingham LLP, filed suit in April, seeking to recoup hundreds of thousands of dollars in unpaid power bills.

The filing stated:

"Defendant, GAW Miners, LLC, has failed to answer or otherwise defend as to plaintiff's complaint, or serve upon the undersigned attorney of record for plaintiff a copy of any answer or other defense which it might have."

According to court documents, a individual named Lester Briney was served on GAW's behalf on 11th May, just over a month after the initial suit was filed. In an April post on the now-defunct forum HashTalk, GAW CEO Josh Garza said that the suit stemmed from "a dispute over the fee structure".

If the court does grant its request for default judgement, it remains unclear how MPC might go about recouping the funds. GAW is effectively defunct following months of staff exits, service shutdowns and the release of thousands of emails that detailed the company's inner workings.

Reports also suggest that former customers and investors are in the process of pursuing a group civil action to recover losses. The number of litigants involved in that potential case could be as high as 500, according to those involved.

After the publication of this article, a representative for MPC provided the following statement:

"Mississippi Power filed a motion for default judgment because GAW failed to answer or otherwise defend the lawsuit. We are asking the court to give us a final judgment on the amount that's owed on this account."

Neither Garza nor Balch & Bingham responded to requests for comment by press time.

The full motion for default judgment can be found below:

Motion for Default Judgment

Silhouettes of power lines image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

LawGAW Miners