Bitcoin mining fraud lawsuit moves forward in New Jersey

A federal lawsuit filed by a group of U.S. bitcoin miners has also been advancing in recent months.

Investors in Lab Rat Data Processing were sued in mid - 2014 for alleged breach of contract, misrepresentation and fraud against the mining operation and its owner, Zachary Dailey. Bitcoin mining is an energy-intensive process by which new transactions are added to blocks and miners have a chance to earn new bitcoins as a reward.

Ten plaintiffs allege they lost more than 2,000 bitcoins , valued at more than $2 million. However, last year U.S. District Judge Joseph Rodriguez questioned whether the New Jersey court actually had jurisdiction over the matter .

According to the New Jersey Law Journal at the time, the judge focused on whether the mining contracts sold by Lab Rat constituted the "bonds" claimed by the plaintiffs. Judge Rodriguez also turned the defendants over to the lawsuit.

The new court order indicates that the years-long lawsuit is still going on. On March 3, Rodriguez negotiated with the plaintiffs, who have always believed that the court actually has jurisdiction over the case.

“Given the allegations set forth in the Charter and the additional detail provided in the proposed Second Amended Complaint, the Court is satisfied that it has diverse citizenship jurisdiction and that the amendment is not without utility ,” Rodriguez wrote.