The Supreme People’s Court of China has sided with Genesis Mining over its claim of nearly half a million graphics cards used to mine cryptocurrency that have been at the center of a legal dispute since 2018.
The rulings, made on June 23 and disclosed on July 29, shed light on the details of a dispute that involved a significant amount of hashing power by one of the world’s largest crypto mining operations but went largely unnoticed over the years.
Based on the court judgements, the graphic processor units (GPUs) that are ordered to be returned to Genesis Mining consist of 485,681 RX470 8GB cards made by Micro-Star International. “The devices involved in this case are still in an operating capacity and are in a [good] condition to be returned,” the court added.
The theoretical hashing power of the GPU stockpile can total to 14 TH/s on the Ethash algorithm. If devoted to Ethereum mining, they could generate nearly $1 million in gross profits every day based on Ethereum’s current difficulty at an assumed $0.06 per kWh energy cost.
Per secondhand market quotes on eBay, a used RX470 8GB card could change hands at around $500, which means the half a million GPUs could be worth as much as $200 million.
“After multiple years of fighting, we are pleased to see the court side in our favor,” Marco Streng, CEO and co-founder of Genesis Mining and Genesis Digital Assets, told The Block.
It appears that China’s recent crackdown on crypto mining also contributed