Bitmain Accuses Orb Energy of Diverting Bitcoin, Damaging Miners in Texas Bankruptcy Case
Bitmain has asked a U.S. bankruptcy court to let it reclaim thousands of bitcoin miners from Orb Energy, accusing the Texas-based firm of misappropriating digital assets, obstructing access, and damaging equipment worth millions of dollars.
In an emergency motion filed August 27 in the Southern (NYSE: SO) District of Texas, Bitmain argued that the automatic stay triggered by Orb Energy’s Chapter 11 petition should not apply to 2,700 Antminer servers housed at Orb’s Van Vleck facility. The Chinese miner manufacturer said the machines, valued at more than $5.5 million, remain its property under a Hosting Sale Agreement and should never be part of Orb’s bankruptcy estate.
The dispute highlights Bitmain’s direct involvement in proprietary mining capacity on U.S. soil—something the company rarely discloses publicly. The 2,700 miners at issue represent part of a larger pattern of hosting deals across the U.S. that have surfaced only through litigation.
Bitmain claims Orb began diverting mining rewards on December 4, 2024, redirecting payouts from Bitmain’s machines to wallets controlled by Orb’s CEO. By Bitmain’s count, the alleged diversion exceeded 99 BTC—worth about $10 million at current market prices.
The company further alleged that Orb CEO Jamieson Zaniewski sold “thousands of Bitcoin belonging to Bitmain” in mid-2025, just ahead of critical state court hearings, while concealing wallet addresses and transaction records to obscure the trail of funds.
Despite state court injunctions, Bitmain says Orb blocked its staff from the site with physical barriers, refused to install monitoring software, and even posted signage implying threats of deadly force. Witnesses also testified that firearms were present on site, according to the filing.
The motion also accuses Orb of installing unauthorized firmware that disabled safety protocols, causing “irreparable damage” to hundreds of units, and of dissipating bitcoin proceeds through insider loans, including $25,000 to the CEO and an $80,000 loan to an officer.
Bitmain says it formally terminated the hosting agreement in July 2025, after Orb allegedly ignored repeated notices of breach. The contract explicitly stated that ownership of the machines “remains absolutely with Bitmain,” the filing notes. Bitmain also pointed to sworn testimony in earlier state proceedings where Orb’s executives admitted the miners were Bitmain’s property. Nonetheless, Orb listed the equipment in its bankruptcy schedules, prompting Bitmain to accuse the company of making false statements under oath.
Bitmain is asking the court to confirm that the servers and any bitcoin mined are not subject to the Chapter 11 stay. Alternatively, it is seeking a stay relief “for cause,” citing ongoing theft and depreciation.
If denied, the company has requested protective measures, including the right to redirect hash rate, weekly accounting of bitcoin mined and spent, and proof of insurance naming Bitmain as an additional insured.
Orb Energy filed for Chapter 11 in August, shortly after Bitmain secured injunctions in Texas state court. Judge Alfredo Pérez is presiding over the case in Galveston.
