Class Action Lawsuit Accuses Just a Bit of Coin Ltd of Running Bitcoin Mining Machine Scam
Spindler et al. v. Just a Bit of Coin, Ltd et al.
Filed: October 2, 2022 ◆§ 5:22-cv-00137
More than a dozen plaintiffs allege they were scammed into paying Just a Bit of Coin, Ltd for Bitcoin mining machines that the company never intended to deliver.
More than a dozen plaintiffs allege they were scammed into paying big money to Just a Bit of Coin, Ltd for Bitcoin mining machines that the company never intended to deliver and has so far refused to refund.
The 18-page proposed RICO class action says that after Grovetown, Georgia-based Just a Bit of Coin, CEO and owner Steven Drawdy and former CFO George Lavoy Graham accepted payment from the plaintiffs and other consumers to begin building machines capable of mining Bitcoin, the parties began to offer excuses as to why they could not hold up their end of the bargain, including by blaming the pandemic for parts supplier disruptions.
One plaintiff, who paid $230,000 to the defendants for a Bitcoin mining machine and was told they could not make the product as “parts were on backorder” with a Chinese supplier due to COVID-19-related shutdowns, claims to have bought the parts “directly from the supplier without issue.”
According to the complaint, the plaintiffs and similarly situated consumers have received neither the Bitcoin mining machines they paid for nor refunds on their contract price. One consumer who “was insistent on a refund” was told by Just a Bit of Coin that they must pay a “refund processing fee” that the defendants simply kept without returning the initial payments, the filing claims.
“Defendants continue to brag publicly about the profits made from this fraudulent business, frequently posting and bragging about the endeavor on Facebook,” the lawsuit says. “At this time, neither Named Plaintiffs nor any Class Member has received a Machine or refund from the Defendants.”
The lawsuit accuses Just a Bit of Coin, Drawdy and Graham of wire fraud in that they misrepresented they could provide the Bitcoin mining machines, that the products would be provided within a reasonable time following the placement of an order, and that they would be built to the requested specifications and delivered upon payment by the plaintiffs. The parties also misrepresented that the machines would be delivered after a Chinese supplier opened following a shutdown, and that Just a Bit of Coin would provide refunds in exchange for a processing fee, the suit claims.
The lawsuit looks to cover all persons who entered into a contract with Just a Bit of Coin in the previous year to whom the company offered to provide a Bitcoin mining machine in exchange for money, who tendered payment to the company pursuant to the contracted agreement, and from whom the defendants accepted money without providing the purchased products or a refund.
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