Charlotte C Lin, an attorney with headquarters in California, has announced it started investigating KnCMiner’s illegal activities.
According to Lin, the digital currency mining company was involved in the breach of contract, public misrepresentation and false advertisement. To attorney created the site kncclassaction.com specifically for the cause. The move was provoked by the increasing number of complaints from bitcoin mining company’s customers.
Lin’s company operates in such legal areas as DUI defense, immigration, employment. Notably, the firm accepts bitcoin, litecoin and dogecoin payments.
KnCMiner has recently received complaints from the customers about defective hardware and delays in shipments, as well as other practices.
The announcement states that the company is “investigating KNCMiner for possible breach of implied warranty of fitness, misrepresentation, and other violations of law by failing to provide a functional or usable product, false advertising; failing to deliver product within adequate time frame, and failing to provide refund upon demand.”
The website writes: “Under the terms of the advertised Titan, it should ‘Yield a minimum of 300 MH/s’ and ‘purchasers shall also receive the Titan during Q3 of 2014′ both of which have certainly been up for debate in the mining community at large.”
Lin commented: “I myself have a lot of colleagues and friends who are actively engaged in mining, trading cryptocurrencies, or own mining equipment. I have heard many complaints from them about not getting refunds back, equipment not working, or under-delivering hashing power.”
The attorney will investigate activities related to the sale of Titan and Neptune mining products. Particularly, she will investigate whether Titan miners were supplied with les hashing power than was stated by KnCMiner.
The potential suit was discussed at the Hashers United Conference, which was held in Las Vegas, and some miners supported the case.
Director of marketing and public relations at KnCMiner, Nanok Bie, said that the action led by Lin will not succeed, as there is no basis for legal action. He admitted the bitcoin mining sector is “a high-pressure business with a lot of strong feelings”.
“There’s a lot of these things happening in the business. We are, on the contrary, a transparent and honest company. We show journalists around our facilities, and our final accounts are public,” he stated.
Lin has not yet taken legal measures as the company gathering data from customers and still building the case. More updates on KnCMiner potential suit are available on the cases’s official website.