Blockchain Breakthrough: Federal Court Crushes nChain's Dismissal Bid in DistroMint LLC's Explosive Contract Clash

ATLANTA, Oct. 3, 2025 /PRNewswire/ -- In a significant victory for innovation in the music and blockchain industries, the U.S. District Court for the Northern District of Georgia has denied defendant nChain UK Ltd.'s motion to dismiss in the ongoing breach of contract lawsuit brought by music producer Eric Finnerud (known professionally as E. Smitty), Sound Alive Enterprise, LLC, and DistroMint, LLC. The ruling, issued by Judge Steven D. Grimberg on September 30, 2025, paves the way for the case to advance to discovery, allowing the plaintiffs to pursue their claims against the Swiss-based blockchain firm.

The lawsuit, Finnerud et al v. nChain UK Ltd. (Case No. 1:24-cv-05280), alleges that nChain breached a commercial contract related to blockchain technology services. Originally filed in state court and removed to federal jurisdiction on November 18, 2024, the case centers on disputes in the rapidly evolving intersection of digital assets and creative industries. Finnerud, an Atlanta-based record producer with patents in tokenization and digital assets, has been at the forefront of integrating blockchain for music distribution and asset management through his companies.

"This decision is a crucial step forward in holding powerful blockchain entities accountable for their commitments," said E. Smitty. "As creators and innovators, we entered into this agreement in good faith to revolutionize how music and digital assets are tokenized and distributed. nChain's actions have not only harmed our businesses but also underscore the need for transparency and reliability in the tech sector."

The court's order also denied as moot the plaintiffs' motion for jurisdictional discovery and a similar motion from the now-terminated defendant, nChain Holding AG, which was dismissed from the case on April 24, 2025. nChain UK Ltd. has been ordered to file an answer to the complaint by October 14, 2025, with both parties required to submit a Joint Preliminary Report and Discovery Plan by October 28, 2025. The ruling allows nChain to potentially renew its personal jurisdiction arguments at the summary judgment stage, but for now, the case proceeds toward uncovering the full details of the alleged breach.

"As the blockchain industry matures, cases like this will set important precedents for contract enforcement and intellectual property protection," added Frederick Anthony Rispoli & Mark Nonni, co-counsel for the plaintiffs from Hodl Law & Nonni Homola. "We're committed to fighting for creators who rely on these technologies to build the future of entertainment."

The outcome of this case could have far-reaching implications for partnerships between tech firms and content creators, emphasizing the importance of honoring agreements in emerging digital economies.

About Eric Finnerud (E. Smitty) and DistroMint, LLC

Eric Finnerud, pka "E. Smitty" is a Grammy-considered record producer and innovator in music technology. Through Sound Alive Enterprise, LLC and DistroMint, LLC, he pioneers blockchain-based solutions for digital asset distribution and tokenization, with patents pending in the field and advocating for creator rights in the crypto space.

For media inquiries, contact: Mark W., [email protected], 470.485.6657.

SOURCE DistroMint, LLC.