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9384-2557 Quebec Inc. v. Northway Mining LLC

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DECISION & ORDER   On April 20, 2019, this Court issued a writ of replevin permitting Plaintiffs to recover disputed property from the Defendants. See dkt. #s 20, 22. The property consists of devices (“miners”) used to mine bitcoin, an electronic currency. Plaintiffs have not yet recovered the property, apparently because of the efforts of Defendants to conceal the property and frustrate Plaintiffs’ attempts to obtain the material. Plaintiffs now seek another writ of replevin to recover their property. See dkt. # 86. Plaintiffs represent that the purpose of the writ they seek is “the return of all of their miners shipped to Defendants because Defendants have no claim of right to Plaintiffs’ miners.” Id. at 1. Plaintiffs claim that “Defendants are destroying Plaintiffs’ miners, selling Plaintiffs’ miners, and collecting insurance proceeds on Plaintiffs’ miners.” Id. That conduct entitles Plaintiffs to take “immediate possession of their miners.” Id. After a discovery conference, on June 19, 2020, Magistrate Judge Christian F. Hummel ordered the Defendants to provide Plaintiffs with: (1) the address where the machines are physically located and to keep the machines at that address unless Defendants notified the Court and the Plaintiffs of any movement; (2) the address of one Defendant; and (3) information about certain funds. See dkt. # 76. Defendants subsequently informed Plaintiffs that Defendants held their miners at 193 Seneca Street in Oswego, New York and at 2140 County Route 1 in Oswego, New York. Dkt. # 86 at 2. Defendants did not account for nearly $600,000 that Plaintiffs had “deposited with [Defendants] to be used against electrical costs.” Id. Plaintiffs allege that around “700 of Plaintiffs’ Miners were recently destroyed,” and that “Defendants are collecting insurance proceeds on” them. Id. at 4. “Plaintiffs seek redirection of those funds from the insurance company to them.” Id. Moreover, Plaintiffs allege, Defendants have engaged in activities that further threaten to undermine the condition of the miners. Id. at

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