Re:SEC charges GAW Miners and ZenMiner as a Ponzi scheme [pdf]
by alvern on Tuesday December 01, 2015 @07:03PM
(#10659881)
It seems they started as a mining operation, then pivoted to sell shares or futures called "Hashlets". The scam started when they oversold these Hashlets and advertised to customers to use a cloud service instead of their physical mining rigs.
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Re:SEC charges GAW Miners and ZenMiner as a Ponzi scheme [pdf]
by cba9 on Tuesday December 01, 2015 @09:34PM
(#10660517)
Right. At one point in the complaint, they say the company had oversubscribed its mining capabilities but kept selling to 4x IIRC, which rather implies that there was mining capability there in the first place (just much much less than they were selling).