Coinmint LLC v Katena Computing Technologies Inc - AAA Case No 01-22-0001-7627 - Final Award - 6 February 2024
Country
Year
2024
Summary
American Arbitration Association, Commercial Arbitration Panel
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Brief Summary of the Parties' Claims
This arbitration arises from a Sale and Purchase Agreement ("SPA") entered into as of May 12, 2021 between Coinmint, as buyer, and Katena, as seller, with a purchase order of the same date ("PO #1") for USD $150 million for Bitcoin mining rigs, with further details described infra. In brief summary, Coinmint as Claimant contends that the SPA and PO #1 (collectively at times referred to as the "Contract") were fraudulently induced by Katena and therefore voidable; that Katena breached the Contract and the covenant of good faith and fair dealing; that Katena is liable under California Penal Code Section 496 (theft by false pretenses), including an award of treble damages and attorneys' fees, and is liable under Business and Professions Code Section 17200 for restitution; and further that Katena is liable for unjust enrichment and money had and received. Generally speaking, through these various legal theories, Coinmint seeks return of approximately $23.4 million that it paid to Katena on the Contract. All such claims are addressed in Section 8 below.
Katena has denied liability on all of Coinmint's claims. Katena has alleged three counterclaims for breach of contract through which it seeks liquidated damages of $37.5 million; breach of a confidentiality agreement; and indemnification for its attorneys' fees and costs incurred in defending against Coinmint's litigation. 4 All such counterclaims are addressed in Section 9, below.
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