Court Sides with Katena Confirming Arbitration over Coinmint
Coinmint was ordered to pay $14.3 million in an arbitration ruling
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A judge in the Northern District of California has signed an order denying bitcoin mining colocation firm Coinmint’s motion to vacate an arbitration ruling that would result in it paying $14 million to chipmaker Katena Computing.
As previously reported, Coinmint entered into an arbitration proceeding against Katena relating to a breach of contract dispute that stemmed from their agreement to develop bitcoin ASIC miners in 2021.
The American Arbitration Association ruled on Feb. 9 in favor of Katena after summoning hearings with key executives from both sides involved in the contract. Notably, the AAA ruled that Kateina was awarded $14.3 million against Coinmint, which Coinmint was ordered to pay.
Subsequently, Katena petitioned the court to confirm the award while Coinmint filed a motion to vacate it, arguing that the “arbitration proceedings were so ‘fundamentally flawed’ that it was deprived of due process.”
However, upon reviewing the case, the court said in a judgment on Wednesday denying Coinmint’s motion to vacate, adding:
“As no basis under Section 10 of the FAA has been identified to vacate the arbitration award, Katena’s petition to confirm the arbitration award is hereby granted.”
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