Kentucky Senator Facing Lawsuits Over Bitcoin Mining Company
Kentucky Senator Brandon Smith is facing two lawsuits related to his Bitcoin mining repair company, Mohawk Energy. The first lawsuit was filed in January 2023 by Ricky Dale Cole, accusing Smith of misrepresenting the value of Mohawk Energy. The second lawsuit, filed in November 2023, is from HBTPower, a subsidiary of Huobi, alleging breach of contract and misrepresentation.
Smith has denied all allegations and has filed counterclaims against both plaintiffs. The lawsuits come amidst a significant expansion in the U.S. cryptocurrency mining sector, which grew by 23% between 2022 and 2024, with Bitcoin mining sites increasing to 48.
HBTPower's lawsuit alleges that Smith did not own the warehouse when he entered into a contract with them. Smith, however, authored Kentucky's 2021 crypto mining tax incentive bill, which could potentially benefit Mohawk Energy. Meanwhile, Cole alleges that Mohawk refused to share financial information and he has not profited from the deal with the company. Mohawk Energy was previously associated with the Chinese company CCCC (China Communications Construction Company), with a contract signed in 2021. The company pivoted from coal cleanup operations to ASIC repair and Bitcoin mining services in 2022.
The lawsuits against Kentucky Senator Brandon Smith and his company Mohawk Energy are ongoing. The allegations and counterclaims could have significant implications for the company and the broader cryptocurrency mining industry in the U.S.
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