Since March, Crypto Billionaires Have Lost $116 Billion

17 persons in the area are represented by the loss in terms of their combined personal equity, including 15 who have seen their fortunes plummet since March.

According to a recent estimate from Forbes, founders’ and investors’ bank accounts have been depleted during the past nine months by $116 billion due to the bear market and the surge of bankruptcy cases in the cryptocurrency industry.

17 persons in the area collectively lost their equity in the loss, with more than 15 of them losing more than half of their wealth since March. As a result, 10 names were taken off the list of bitcoin billionaires.

Devin Finzer and Alex Atallah from OpenSea, Nickel Viswanathan and Joseph Lay from the bitcoin software business Alchemy, Fred Ehrsam from Coinbase, Michael Saylor, the founder of MicroStrategy, and Tim Draper, a venture capitalist, are also among the former billionaires.

Blackware was sued for allegedly misrepresenting the performance of the miners.

On December 17, a London-based company named Faes & Company filed a case against the cryptocurrency mining company Blockware Solutions LLC, claiming that it lacked access to enough electricity to keep the machines running and had overestimated the performance capabilities of its miners.

Plaintiffs demand both compensatory and punitive damages, alleging losses of $250,000.

However, according to the complaint, Blackware “did not own or run a facility to host the miners and was unable to do so consistently” at the time of the contract. It also mentioned:

“Furthermore, the third-party facilities that Blockware used to host and manage the miners lacked reliable power (likely because of a restrictive contractual agreement with their energy supplier), which meant that the operation of the miners was and still is frequently subject to interruption or “curtailment.” Because of this protracted downtime and unavailability owing to a shortage of electricity”

When a Bitcoin (BTC) was worth more than $45,000 and was to be delivered to and hosted on Blockware’s premises. But the rigs didn’t start operating until April. The lawsuit further stated:

“Faes’ miners experienced downtime issues that started about two days after they first went online and persisted throughout 2022, leading to numerous complaints and support tickets from Faes. Despite these issues, Blackware maintains and updates a publicly accessible “status page” that displays consistently high uptime at its facilities, including the Pennsylvania location where Faes’ miners have been housed, which has displayed steady 100% uptime for the previous 90 days”.

Cointelegraphs’ requests for comments were not fully responded to by Blockware Solutions.

The crypto winter and a rise in energy prices have severely hurt the profitability of bitcoin mining operations. According to Hashrate Index, the top 10 Bitcoin mining debtors collectively owe around $2.6 billion.

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