BUTTE — Members of a Butte bitcoin mining operation have sued one of their major investors, Matthew Brent Goettsche, claiming his alleged fraudulent business practices have harmed the company.
Montana Tech Professor and cryptocurrency expert Pat Munday said Goethsche’s recent federal indictment made the company idle.
“It effectively shuts down the operation through no fault of Tabish or any of the local operators,” said Munday.
Rick Tabish and Kevin Washington filed the suits that claim Goettsche cost FX Solutions—which started CryptoWatt in Butte in 2018—millions due to his alleged malfeasance.
“That essentially freezes the payroll, the ability of CryptoWatt to pay Northwestern Energy power bills,” said Munday.
The suit claims more than 30 employees with the Butte bitcoin company had to be laid off.
“It’s the employees that had been promised jobs here in Butte, some sense of economic security, they’re the real losers,” said Munday.
And as long as CryptoWatt remains shut down, they can’t generate more bitcoin. So the big question is, how soon can they get back in operation? That question will be answered in court.
“And as we know in America, the wheels of justice turn exceedingly slow and they grind exceedingly fine,” said Munday.
No date has been set for the lawsuits in Butte District Court. Goettsche, of Lafayette, Colo., remains jailed on the unrelated federal charges.