Lawsuit accuses Coinmint CEO of taking 448.7193 BTC from mining

Mintvest Capital has filed an amended complaint against Energy & Compute, LLC, the company previously called Coinmint, alleging that its chief executive, Ashton Soniat, misappropriated bitcoin generated by the firm’s mining operations.

The filing also levels broad accusations of securities fraud and offenses under the Racketeer Influenced and Corrupt Organizations Act (RICO).

In particular, the complaint says that “on each occasion when new machines were added, Mr. Soniat told investors that production started on a later date than it actually did.”

“During the gap periods — between the actual start up and the announced startup — Mr. Soniat redirected all BTC Coinmint produced to his personal BTC wallet,” the suit adds.

Overall, according to the lawsuit, “Mr. Soniat stole… 448.7193 BTC.”

Soniat allegedly “extended these ‘testing’ periods for weeks or months, taking all proceeds that should have been distributed” in order to increase his share.

The lawsuit further contends that Coinmint could not supply financial reporting to investors, tying this to a “systematic failure to maintain proper financial records.” That failure, it adds, “appears deliberate, designed to obscure self-dealing transactions and prevent outside oversight.”

Mintvest, which holds equity in Coinmint, says the company “has generated profits exceeding $570 million.” Its 18.2% stake, it argues, entitles it to $104 million.

Further, the amended complaint states that New York Digital Investment Group (NYDIG), also named as a defendant, failed to compensate Mintvest when it acquired Coinmint. In the suit's words, NYDIG “did not compensate Mintvest as the agreement and plan of merger provides.”

The implication, according to the filing, is that NYDIG was attempting to keep Mintvest from its ownership interest in Coinmint.

In its prayer for relief, Mintvest requests “compensatory damages of at least $104 million” for profits it says were withheld. It also asks for “compensatory damages of at least $47.1 million for the BTC stolen,” in addition to punitive and statutory damages.

This amended complaint is tied to an earlier lawsuit that was dismissed without prejudice.

Coinmint has faced other legal fights before, including a lawsuit against Katena Computing and DX Corr over a $150 million acquisition of BTC mining rigs.