CoinTerra recently made news when due to an alleged debt it issued a message to its users saying that for the time being they would be unable to issue any payments. As their website remained fully functional, many customers looked at the message with a questioning eye.
Now it appears as if things have taken an even greater turn downhill. C7, at one time a loyal and prominent business partner, is alleging that CoinTerra purposely underpaid for services and was continuously late in its repayment schedule. C7 is currently seeking a total of $5.4 million in court fees, damages and related charges.
CEO of C7 Wes Swenson spoke of CoinTerra and the oncoming legal battle:
“We had filed suit against them, which is public, for non-payment over 60 days. So, their services were suspended with no attempt to solve that. We went ahead and filed suit for that non-payment, plus the breach of contract for the remaining contract… We did try a remediation process [where] they continue mining but be paying us in the meantime, but they didn’t attempt to resolve it that way.”
As court documents currently state:
“Almost immediately after entering into the contract, CoinTerra fell delinquent, often paying less than the amount required to bring it current. Upon information and belief, CoinTerra often had revenue sufficient to make larger payments to C7.”