Compass Mining Leadership Steps Down Following Alleged Non-Payment Debacle

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Com­pass Min­ing – a US-based min­ing ser­vice that hosts Bit­coin min­ers on behalf of clients – has recent­ly announced that both CEO Whit Gibbs and CFO Jodie Fish­er would be step­ping down, effec­tive immediately.

The state­ment also informed users that CTO Paul Gosker and Chief Min­ing Offi­cer (CMO) Thomas Heller would be tak­ing over as tem­po­rary lead­ers until a more per­ma­nent solu­tion could be found.

The state­ment indi­cat­ed that their main objec­tive – mak­ing min­ing eas­i­er – has been com­pro­mised by “mul­ti­ple setbacks. ”

“We rec­og­nize that there have been mul­ti­ple set­backs and dis­ap­point­ments that have detract­ed from that objec­tive. Through this restruc­tur­ing, the com­pa­ny is whol­ly focused on regain­ing the good­will of our stake­hold­ers and the com­mu­ni­ty, as well as deliv­er­ing on our mis­sion of pro­vid­ing best-in-class ser­vice for min­ers of all sizes. These changes are being imple­ment­ed to achieve the next lev­el of growth for Com­pass Mining.”

It would be easy to assume the neu­tral word­ing above refers to the cur­rent bear mar­ket that is caus­ing many DeFi plat­forms and cryp­to exchanges to strug­gle to stay afloat. How­ev­er, a num­ber of alle­ga­tions have recent­ly sur­faced that could indi­cate Com­pass’ cur­rent woes are far more widespread.

Customer Support Curtailed With Only a Brief Warning

Fol­low­ing an update by Dynam­ic­sMin­ing – a busi­ness part­ner of Com­pass report­ed­ly prepar­ing for lit­i­ga­tion over non-pay­ment of elec­tric­i­ty bills for host­ed min­ing hard­ware – Com­pass clients stat­ed that the firm’s Dis­cord had also been shut down with only one day’s advance warning.

Although this infor­ma­tion is still uncon­firmed, the offi­cial Dis­cord invite link seems to be invalid – and the only way to get in touch with the team is via phone or e‑mail.

Addi­tion­al­ly, Dynam­ic­sMin­ing stat­ed that they have tried to help Com­pass’ cus­tomers in get­ting con­trol over their min­ing rigs. How­ev­er, as the min­ing ser­vice provider alleged­ly did not inform their clients of the ser­i­al num­bers of said machines, Dynam­ics is unable to do much for them at this moment.

Fur­ther­more, Com­pass’ ToS, para­graph 3.4, states that the com­pa­ny reserves the right to “rearrange, remove, or relo­cate Cus­tomer Hard­ware with­out any lia­bil­i­ty to Com­pass.” As a result, the wor­ries of Com­pass clients regard­ing the state of their min­ers in the Maine facil­i­ty run by Dynam­ics seem quite reasonable.

Over Half a Million in Unpaid Bills

Although the cur­rent dis­pute with Dynam­ics can­not be ascer­tained to be the main cat­a­lyst behind Com­pass’ trou­bles – par­tic­u­lar­ly since they had to sell off about $30 mil­lion worth of hard­ware admin­is­tered by Russ­ian cryp­to min­ing com­pa­ny Bitriv­er – a sud­den move to end the firm’s busi­ness rela­tion­ship with Dynam­ic­sMin­ing prob­a­bly played a sig­nif­i­cant part. Not to men­tion the legal costs the split could incur if the sit­u­a­tion is not solved amicably.

Dynam­ic­sMin­ing has stat­ed on Twit­ter that Com­pass cur­rent­ly owes them $1.2mln in elec­tric­i­ty bills, of which they have only paid $665k. The state­ment points out fur­ther alleged irreg­u­lar­i­ties in the recent­ly ter­mi­nat­ed part­ner­ship, with a promise of more receipts as proof. Dynam­ic­sMin­ing plans to move for­ward with legal action on the basis of breach of con­tract unless an ami­ca­ble agree­ment can be reached.

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