Crypto Mining Dispute Escalates as Quad Cities Ethereum Mining Alleges Redeker’s TwinTitan Interfered with Business Contract

News | March 13, 2024 By:

On Tuesday, February 27, 2024, Justin Landi filed an amended third-party complaint against Mark Redeker in the United States District Court for the Central District of Illinois, Rock Island Division.

Landi and his company Quad Cities Ethereum Mining are being sued by Alexander Maruyama for conversion, fraud, breach of fiduciary duty, and breach of contract related to their cryptocurrency mining business. Landi denies the accusations and is defending himself in the lawsuit. However, in his newly amended third-party complaint, Landi alleges that if he is found liable to Maruyama, then Redeker should share responsibility.

The complaint provides background on the various entities and individuals involved. Landi owns Quad Cities Ethereum Mining, an Iowa LLC, while he and Redeker each own 50% of another LLC called Coingen. Coingen owns a warehouse in East Moline, Illinois that both Quad Cities Ethereum Mining and Redeker’s company TwinTitan lease space in. Maruyama had previously been a client of Quad Cities Ethereum Mining, having them manage cryptocurrency mining equipment stored at the Coingen warehouse.

Landi accuses Redeker of interfering in this business relationship. In 2020, Redeker allegedly converted over $10,000 worth of ethereum cryptocurrency belonging to Quad Cities Ethereum Mining and used it to pay debts owed to Coingen, weakening their financial position. Then in 2022, Redeker purportedly made false statements to Maruyama that caused him to terminate his contract with Quad Cities Ethereum Mining and move his business to TwinTitan instead. As a result, Quad Cities Ethereum Mining lost Maruyama’s lucrative mining contract.

Additionally, Landi claims that since March 2022, Redeker has taken control of unspecified cryptocurrency mining equipment rightfully belonging to Quad Cities Ethereum Mining. He has refused demands to return this equipment. Through these various actions, Landi asserts that Redeker tortiously interfered with current business relations, violated consumer protection laws, and committed negligent misrepresentation and conversion.

The amended third-party complaint seeks to hold Redeker legally responsible under multiple causes of action if Landi is ultimately found liable to Maruyama. It remains to be seen how the court will rule in this complex commercial dispute spanning the cryptocurrency and warehouse leasing industries. The newly added claims against Redeker ensure that the legal battle will continue to unfold in the months ahead.

Please contact BlockTribune for access to a copy of this filing.