Sayenko Kharenko successfully represented a Swiss-based digital asset technology company and its affiliate as co-respondents and counterclaimants in a USD 42 million arbitration under the SCC Arbitration Rules. The case involved two claimants seeking compensation for a tax imposed by the Swedish tax authority: a Swedish company that breached its contractual obligations related to energy supply, maintenance, and return of leased cryptocurrency mining equipment and its Swiss parent company, which acted as guarantor.
The case was complex, spanning multiple jurisdictions with a number of intertwined agreements and counterclaims. It involved intricate technical issues related to cryptocurrency mining and services and tax treatment of cryptocurrency mining in Sweden, requiring specialised legal and technical expertise from counsel and arbitrators. Key procedural issues included interim measures concerning crypto assets and mining equipment, security for costs, joinder, consolidation and summary proceedings for certain claims.
A further development creating an additional layer of complexity occurred when a Swedish claimant filed for bankruptcy. This raised an important jurisdictional question of whether the Swedish company in liquidation was entitled to continue arbitration or its bankruptcy estate. Sayenko Kharenko, working closely with a Swedish co-counsel, successfully helped the client navigate all these issues.
Through joint co-counselling with Swedish counsel and close cooperation with the client’s in-house team, Sayenko Kharenko’s team brought a favourable outcome for the client in this landmark arbitration.
The team included Olexander Droug, Tatyana Slipachuk, Alina Danyleiko and Vladyslav Bandrovsky.
