Riot Platforms Sues Rhodium Enterprises for $26 Million

Riot Platforms Takes Legal Action

Riot Platforms, a prominent Bitcoin mining company, has initiated a lawsuit against Rhodium Enterprises. The legal claim arises from Rhodium's alleged failure to pay $26 million in service fees for utilizing Riot's Whinstone mining facilities. This dispute has been ongoing since 2021, with Rhodium consistently refusing to settle the outstanding fees.

Allegations of Miscalculation

Riot Platforms, previously known as Riot Blockchain, accuses Rhodium Enterprises of deliberately miscalculating the owed amount. The lawsuit was filed in the District Court of Milam County, Texas, and seeks reimbursement for legal fees incurred during this process. Riot's Q1 2023 financial report highlights these unpaid fees, asserting Rhodium's non-compliance with their hosting agreements.

Termination of Hosting Agreements

Riot has terminated certain hosting agreements with Rhodium, as stated in their amended petition. The breach of contract claims emphasize Rhodium's failure to pay the agreed hosting and service fees. Riot seeks a declaration confirming the termination of these agreements and asserts that no power credits are owed to Rhodium under any existing contracts.

Efforts to Resolve the Dispute

Despite multiple attempts to collect the debt in May 2022 and April 2023, Rhodium's refusal to pay forced Riot to proceed with legal action. The ongoing legal battle underscores the challenges faced by companies in the digital asset technology sector when contractual obligations are not met. This case highlights the importance of clear and enforceable agreements in the rapidly evolving Bitcoin mining industry.