Here are the main crypto mining scams that have surfaced so far – these are a mix of cloud mining services, and mining software packages, claiming to offer mining equipment but then running off with customers money.
These scams should hopefully give you an idea of what to look out for if you see an offer that seems too good to be true!
This company initially seemed to be a more or less legit reseller of crypto mining rigs, soon started selling cloud mining contracts, under the name Hashlets, and then in 2015 launched Paycoin, their own altcoin. but seemed to turn into a Ponzi, where several investors lost money. This was operated by CEO Homero Joshua Garza.
GawMiners, and their crypto Paycoin, fell apart in 2015, accused of having sold services they never owne, robbing one investor and paying another by misrepresenting their services.
The company was closed with and Garza being fined $9.18 million plus a prejudgment interest of $742,744 by the SEC for the complete scam. Garza eventually plead guilty in 2017, but the investors still haven’t got any of their money back.
HashOcean offered a crypto cloud mining service, until the site went down amist their claims of having been hacked. Even before then, they had a history of paying their customers late, or not at all. Hashocean was formed in 2014 and claimed to have 6 mining farms in different locations around the world.
It seems users did get paid out, more or less ontime, for several months, until the company suddenly announced its movement to a different datacenter, after which payouts became more irregular until the scheme- seemingly a Ponzi – shut down altogether, taking the investments of their 700,000 users.
CoinIntellect offered mining softwares, focused on mining Dogecoin at home. They had several offers of fixed daily returns (too good to be true) and despite a good-looking website, most of the reviews seemed to be paid rather than real. It seems the software was filled with 4 hacking viruses which would download onto users computers on installation of Cointellect. Cointellect was already accused of being a scam in 2014 and stopped users from being able to withdraw any payments in 2015.
Biteminer initially seemed to be a legitimate scheme with affordable mining services and a wide range of pricing options. However, they promised extremely high daily returns which eventually led to the closure of this platform. No investor got any initial deposit or promised a return.
BiteMiner creators failed to provide enough evidence about their hardware infrastructure, thereby openly revealing the scam.
Hasinvest.net was a Monero mining pool, which started in 2016 but only ran for a few months – new money stopped flowing in to pay back the original investors, before expected. It seems that Hashinvest was a pure Ponzi scheme which never had the intention to pay investors in the long run.
Analysts around the web found this to be an offline website with no real identity. Additionally, showing initial setup from high-risk countries. Certain other parameters regarding the website resulted in low trust score.
This is again a scam which ended with several investors losing their money.