GAW Miners Absent in Ongoing Mississippi Court Case

GAW Miners Absent in Ongoing Mississippi Court Case

UPDATE (19th June 21:00 BST): This report has been updated with comment from Mississippi PowerCompany.

A utility firm in Mississippi is seeking a defaultjudgment against cryptocurrency mining company GAW Miners months after filing suit for breach ofcontract.

Mississippi Power Company (MPC) said in a 17th April filing submitted to the US District Court ofSouthern Mississippi that it was entitled to a default judgment in its favor owing to a lack ofresponse from GAW.

MPC is seeking $346,647.29 in damages plus interest. MPC began offering services to GAW inOctober of last year, providing electricity to its Mississippi-based data center.

The company, which is being represented by Gulfport-based law firm Balch & Bingham LLP, filedsuit in April, seeking to recoup hundreds of thousands of dollars in unpaid power bills.

The filing stated:

"Defendant, GAW Miners, LLC, has failed to answer or otherwise defend as to plaintiff's complaint,or serve upon the undersigned attorney of record for plaintiff a copy of any answer or other defensewhich it might have."

According to court documents, a individual named Lester Briney was served on GAW's behalf on11th May, just over a month after the initial suit was filed. In an April post on the now-defunct forumHashTalk, GAW CEO Josh Garza said that the suit stemmed from "a dispute over the fee structure".

If the court does grant its request for default judgement, it remains unclear how MPC might goabout recouping the funds. GAW is effectively defunct following months of staff exits, serviceshutdowns and the release of thousands of emails that detailed the company's inner workings.

Reports also suggest that former customers and investors are in the process of pursuing a groupcivil action to recover losses. The number of litigants involved in that potential case could be as highas 500, according to those involved.

After the publication of this article, a representative for MPC provided the following statement:

"Mississippi Power filed a motion for default judgment because GAW failed to answer or otherwisedefend the lawsuit. We are asking the court to give us a final judgment on the amount that's owed onthis account."

Neither Garza nor Balch & Bingham responded to requests for comment by press time.

The full motion for default judgment can be found below:

Motion for Default Judgment

Silhouettes of power lines image via Shutterstock

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