Compass Mining severed ties with Russian hosting provider Bit River and did not return Bitcoin mining equipment to its customers. The company cited an unenforceable fine issued by the United States of America as the reason for its actions. Bit River was the Russian hosting provider. Directly as a result of this, customers are filing lawsuits against Compass Mining for over $2 million, alleging that the company engaged in fraudulent operations and defrauding them out of their money.

According to a document filed with the court on January 17, Compass Mining reportedly informed Bit River in April 2022 that it had terminated its “relationships and transactions with Bit River” as a direct result of the sanctions imposed on it as a direct result of Executive Order 14024. These sanctions were imposed as a direct result of Compass Mining informing Bit River that it had terminated its “relationships and transactions with Bit River.” This information was included in the document that was filed with the court as part of the filing process.

Compass “did not offer” to refund or even recover assets entrusted to the company by its clients, which were stored at the Bit River facility in Russia, according to allegations that have been made against the company. These allegations stem from lawsuits that have been filed against the company. The assets in question were located in Russia at the time of the investigation.

On the other hand, it has been claimed that the claim that returning mining equipment would be a violation of Executive Order 14024, which prohibits doing business with sanctioned organizations, is “misguided”. In other words, returning the mining equipment would not be a violation of Executive Order 14024. This is because Executive Order 14024 prohibits doing business with organizations that are under sanction.

Under the legally binding agreement signed by all parties, Compass has “both the right and the responsibility to effect the reclamation of its clients’ mines.” This provision is included in the agreement.

Compass management reacted aggressively to concerns raised by customers by stating that the company “cannot execute or facilitate” any business transactions with Bit River.