Default Certificate Overturned in Cryptocurrency Lawsuit Involving Nimbus Mining

News | June 25, 2024 By:

On Tuesday, June 11, 2024, the US District Court for the Southern District of New York granted a motion to vacate a default certificate and denied a motion for default judgment in the case of Saidnia v. Nimbus Mining LLC et al.

The case involves a dispute over cryptocurrency between plaintiff Tiffany Saidnia and defendants Nimbus Mining LLC, Remy Jacobson, Greg Bachrach, and Jean-Marc Jacobson. Saidnia alleged that Nimbus Mining had promised her 30.39129 bitcoins as part of an agreement but failed to deliver them. She further claimed that Remy Jacobson later also promised to pay her the bitcoins.

The defendants had been actively defending the case, filing a motion to dismiss that was denied in October 2023. However, their previous lawyers withdrew from representing them in December 2023 right before their answer to the amended complaint was due. Saidnia then filed for and received a default certificate in late December when no answer was filed.

In January 2024, the Jacobson defendants hired new counsel and immediately took steps to remedy the default. Their attorneys contacted both the plaintiff and the court about their intent to file a motion to vacate the default. Both sides agreed to a briefing schedule for the motion, which was filed on January 26th.

In his written ruling, Judge Vernon Broderick analyzed the factors for vacating a default under Rule 55(c) of the Federal Rules of Civil Procedure. This included whether the default was willful, if the plaintiff would be prejudiced, and whether meritorious defenses existed.

The judge found the default was not willful, as the defendants had plausible reasons for missing the deadline and moved swiftly after learning of the default. He also ruled the plaintiff did not demonstrate prejudice, rejecting claims about bitcoin valuation fluctuations.

Further, Judge Broderick decided the defendants presented meritorious defenses in their proposed answer, which included 28 affirmative defenses relating to issues like parties to alleged contracts. Given his conclusions and the preference for resolving cases on the merits, the judge vacated the default certificate.

The lawsuit will now proceed with the defendants actively defending the case. The ruling suggests the court is willing to give parties an opportunity to address a default as long as they remedy the situation promptly and raise potentially valid defenses.

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