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Bitcoin [BTC] mining by Bitmain called out as fraud in a class action lawsuit

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In a recent turn of events, Bitmain, the world’s largest cryptocurrency mining device manufacturers, was sued in the state of California for allegedly mining without the customers’ consent.

According to Crowdfund Insider, a class action lawsuit was filed by Gor Gevorkyan from Los Angeles against the mining giant Bitmain. The lawsuit claims that Bitmain’s machines start at full-power high-energy consumption mode right from the start, even before the user’s account is linked.

The lawsuit further claims that the mined cryptocurrencies during the setup are directed to Bitmain’s account on Antpool servers.

The plaintiff Gor Gevorkyan mentioned that until two years ago, the machines by Bitmain started in a low-power mode with no default account. He added:“Recently, Bitmain modified the startup procedure for its ASIC devices such that the devices immediately start in full-power high-energy consumption mode before the customer’s account is linked to the device and stay in that mode until the setup process is complete. Moreover, the default account setting on the Bitmain ASIC devices is set to contribute to Bitmain’s own account on its own Antpool server.”

He continued:“As a result of this new practice, Bitmain ASIC devices cost more to operate during the setup phase and transfer virtual currency to Defendant rather than the customers.”

Gevorkyan claims that the time required to set up the rig takes a couple hours or sometimes days and during the time, the mined cryptocurrencies, as per their new ASIC miner configurations, are directed to Antpool’s servers owned by Bitmain.

The lawsuit also provides background data suggesting that the mining costs have increased “tenfold” in a span of one year, between 2016-17. Gevorkyan also said that he had purchased Bitmain’s ASIC devices, including the Antminer 9, in January 2018. Furthermore, he added:“Bitmain is the largest single miner of cryptocurrency in the world…and largest single competitor to each of its ASIC device customers because it maintains its own virtual currency mining accounts…(and runs) virtual currency mining “farms” in locations where electricity costs are extremely low, including Russia and inner Mongolia.”

As reported by Bitcoin Magazine in June 2018, Bitmain controls 51% of the overall hash rate in the crypto-verse. Referring to the above, the lawsuit claims that “Bitmain made $3-4 billion in profits in 2017.”

A Twitter user Reina Nakamoto commented:“Naw man they steal the hash while it’s plugged into YOUR electricity for the initiation period at the start. And the guy in the lawsuit alleged this takes from a day to a week, so that’s alot of loss :0. Ack, and they could have used ur “new” miner too :((. Shady biz.”

In a recent turn of events, Bitmain, the world’s largest cryptocurrency mining device manufacturers, was sued in the state of California for allegedly mining without the customers’ consent.

According to Crowdfund Insider, a class action lawsuit was filed by Gor Gevorkyan from Los Angeles against the mining giant Bitmain. The lawsuit claims that Bitmain’s machines start at full-power high-energy consumption mode right from the start, even before the user’s account is linked.

The lawsuit further claims that the mined cryptocurrencies during the setup are directed to Bitmain’s account on Antpool servers.

The plaintiff Gor Gevorkyan mentioned that until two years ago, the machines by Bitmain started in a low-power mode with no default account. He added:“Recently, Bitmain modified the startup procedure for its ASIC devices such that the devices immediately start in full-power high-energy consumption mode before the customer’s account is linked to the device and stay in that mode until the setup process is complete. Moreover, the default account setting on the Bitmain ASIC devices is set to contribute to Bitmain’s own account on its own Antpool server.”

He continued:“As a result of this new practice, Bitmain ASIC devices cost more to operate during the setup phase and transfer virtual currency to Defendant rather than the customers.”

Gevorkyan claims that the time required to set up the rig takes a couple hours or sometimes days and during the time, the mined cryptocurrencies, as per their new ASIC miner configurations, are directed to Antpool’s servers owned by Bitmain.

The lawsuit also provides background data suggesting that the mining costs have increased “tenfold” in a span of one year, between 2016-17. Gevorkyan also said that he had purchased Bitmain’s ASIC devices, including the Antminer 9, in January 2018. Furthermore, he added:itmain is the largest single miner of cryptocurrency in the world…and largest single competitor to each of its ASIC device customers because it maintains its own virtual currency mining accounts…(and runs) virtual currency mining “farms” in locations where electricity costs are extremely low, including Russia and inner Mongolia.”

As reported by Bitcoin Magazine in June 2018, Bitmain controls 51% of the overall hash rate in the crypto-verse. Referring to the above, the lawsuit claims that “Bitmain made $3-4 billion in profits in 2017.”

A Twitter user Reina Nakamoto commented:“Naw man they steal the hash while it’s plugged into YOUR electricity for the initiation period at the start. And the guy in the lawsuit alleged this takes from a day to a week, so that’s alot of loss :0. Ack, and they could have used ur “new” miner too :((. Shady biz.”

Source.ambcrypto

Bitcoin

More Bitcoin ATMs are being introduced by LibertyX as interest grows

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  • The company behind first launching Bitcoin ATMs in the United States, LibertyX to introduce more.
  • LibertyX have announced they will add another 90 ATMs to its network. 

LibertyX, the firm that launched the first Bitcoin (BTC) automated teller machine (ATM), in the United States, will be adding 90 new machines to its network.

The Boston-based firm will be partnering with independent ATM operator DesertATM, as part of the network expansion, as detailed within a report by global ATM market publication ATMmarketplace on July 18.

DesertATM will be uploading LibertyX on 90 of its Genmega ATMs to facilitate Bitcoin operations. In terms of the new Bitcoin ATM locations, these will be placed at; gas stations such as AMPM, ARCO & Chevron, as well as Family Dollar retail stores, as per the press release notes.

source:.fxstreet

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Bitcoin not yet banned in India, regulations around the corner

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  • The Minister of State to the Ministry of Finance told the upper house of the Indian Parliament, cryptos are not banned yet.
  • The Minister, Anurag Singh Thakur, also stressed the need of creating a solution that caters to global regulators.

As per Anurag Singh Thakur, the Minister of State to the Ministry of Finance, holding or trading cryptocurrencies is not banned in India. During an address to the upper house of the Indian Parliament, Thakur stated that the Reserve Bank of India and the Ministry of Finance have issued notices regarding the use of Bitcoin and other similar coins:

“Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned Departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws.”

The Minister’s response followed a recent report regarding an alleged crypto blanket ban draft which stated that the government would sentence crypto traders with a ten-year imprisonment.

In a separate letter addressed to the Ministry of Corporate Affairs, Thakur stated that an interministerial committee needs to create a solution that caters to global regulators:

“It is difficult to state a specific timeline to come up with clear recommendations. The Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary, Department of Economic Affairs is examining all issues, including the pros and cons of the introduction of an official digital currency in India. No decision on licensing and authorizing any entity or company to operate such schemes or deal with Bitcoins or any virtual currency has been made as yet.”

source:.fxstreet

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Bitcoin price prediction: BTC/USD faces two healthy resistance levels on path back to $11,000

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  • BTC/USD is currently trading around $10,545.
  • The two resistance levels are at $10,575 and $10,700.

BTC/USD had a bearish Friday where the price fell from $10,660 to $10,540. Bitcoin managed to have a bullish start to this Saturday and is currently trading for $10,545. The daily confluence detector shows two moderate-strong resistance levels at $10,575 and $10,700. On the downside, there are two support levels of note at $10,500 and $10,375.

BTC/USD daily confluence detector

fxsoriginal

The $10,575 resistance level has the 1-week Fibonacci 61.8% retracement level, while the $10,700 has the most substantial resistance level but no confluences has been detected. On the downside, the $10,500 support level has the 100-day simple moving average (SMA 100) and the 1-hour previous low. The $10,375 level possesses the 1-day Fibonacci 38.2% retracement level.

source:.fxstreet

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