Ayrton Capital Sued by Bitdeer Technologies Group Over Alleged Unfair Lending Practices

Background of the Lawsuit

Allegations of Toxic Lending Practices

Bitdeer Technologies Group has filed a lawsuit against Ayrton Capital LLC in a Manhattan federal district court, accusing the investment firm of engaging in “toxic lending practices” towards borrowers.

Legal Representation

Attorneys Involved

Attorney Michael B. Carlinsky from Quinn Emanuel Urquhart & Sullivan represents Bitdeer in the lawsuit, while Andrew David Gladstein and Gayle Klein from Freshfields Bruckhaus Deringer represent Ayrton.

Dispute Details

Contract Modification Allegations

Bitdeer alleges that Ayrton modified the contract’s terms during negotiations, expanding penalties for any future breach by Bitdeer. This led to claims of unfair practices and an “unconscionable contract.”

Counterclaims and Damages

Ayrton has alleged damages of over $32 million, while Bitdeer argues that the penalties imposed are disproportionate to any actual damages suffered and that Ayrton refused to provide the agreed financing.

Conclusion

Outcome of the Lawsuit

The lawsuit between Bitdeer and Ayrton revolves around allegations of unfair lending practices and contractual disputes, highlighting the challenges faced by companies in financing arrangements.