Cryptocurrency Mining Firm Sues to Recover Seized Equipment

News | June 4, 2024 By:

On Thursday, May 23, 2024, BEEQB, LLC filed a lawsuit against BlockQuarry Corp and Pantheon Resources, Inc. in the District Court of South Carolina seeking the return of cryptocurrency mining machines and containers.

According to the complaint, BEEQB is a Florida-based company involved in cryptocurrency mining. In 2021, it entered agreements with Uptime Hosting to have over 1,300 of its Bitcoin mining machines, known as miners, hosted at facilities in Oklahoma and South Carolina. BEEQB would supply the miners and pay hosting fees, while Uptime Hosting provided electricity, space, and maintenance services.

However, issues arose where Uptime Hosting failed to deliver the proper amount of electricity and refused to return security deposits or equipment when requested. BEEQB has had an ongoing lawsuit against Uptime Hosting and related companies since September 2023 seeking the return of its miners and containers.

In early 2023, BlockQuarry sued the owner of the South Carolina facility, the Gaffney Board of Public Works, over the termination of its lease. Throughout this litigation, BlockQuarry held itself out as the “bailee” of property left at the facility.

When BEEQB learned of the suit, it demanded the return of its miners and containers from the Board. However, the Board said nothing could be distributed without court approval. In November 2023, BlockQuarry and the Board dismissed all claims between them.

Though BlockQuarry was expected to return all owner’s equipment per the settlement terms, it has so far failed to return BEEQB’s property. BlockQuarry removed everything from the facility in mid-November but has refused inspections and provided no timeline for return, despite repeated requests and provision of ownership records by BEEQB.

Pantheon Resources also became involved, seeking to take ownership of the alleged “debt” BlockQuarry claims BEEQB owes related to moving the equipment, and threaten using the miners itself until the nonexistent debt is settled.

Given the extended delays and obstacles, BEEQB has now filed this suit seeking the return of its miners and containers, damages for loss of use, and alleging negligence, breach of contract, and conversion against BlockQuarry and conspiracy related to Pantheon Resources.

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