Court Upholds Ruling on Cryptocurrency Mining Rig Contract: Buyer Awarded BD16,200

TDT | Manama

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In a landmark case, the High Appeals Court upheld a lower court ruling to void a contract for the sale of a cryptocurrency mining rig and ordered the seller to pay the buyer 16,200 Bahraini dinars.

The decision was based on the seller's failure to deliver the rig within the agreed-upon timeframe, resulting in a significant loss for the buyer.

The case involved a buyer who entered into a contract with a seller in January 2022 to purchase a mining rig for 16,200 Bahraini dinars.

The agreement stipulated that the rig, imported from China, would be delivered within three months of payment. However, the seller failed to deliver the rig on time and also refused to refund the buyer's money.

The lower court ruled in favour of the buyer, voiding the contract and ordering the seller to pay the full purchase price. The seller appealed the decision, arguing that he had imported the rig and attempted to deliver it to the buyer, who refused to accept it.

The High Appeals Court, however, sided with the buyer, finding that the seller had breached the contract by failing to deliver the rig within the agreed-upon timeframe. The court noted that the seller had contracted for multiple mining rigs, and the manufacturer in China had withheld delivery due to non-payment.

This delay, the court found, was entirely the seller's responsibility and ultimately resulted in a significant drop in the price of the rig, causing the buyer a loss of nearly 10,000 Bahraini dinars.

The court also dismissed the seller's claim that the COVID-19 pandemic had impacted the delivery of the rig, citing testimony from a witness who stated that import operations from China were functioning normally in 2022.