Hashflare Cloud Miner Goes Under, Over a Million Customers Affected

On June the 22nd 2018, a cloud miner said their “web site might be present process upkeep and could also be unavailable tomorrow.”2 min


On June the 22nd 2018, a cloud miner said their “web site might be present process upkeep and could also be unavailable tomorrow.”

Tomorrow got here and went with nothing heard till right this moment after they mentioned they’ve turned off their miners in an announcement we are going to later quote in full. They are saying:

“BTC mining continues being unprofitable, in gentle of which we wish to inform you that on 18.07.2018 we have been compelled to begin disabling SHA {hardware} and right this moment, on 20.07.2018, cease the mining service of energetic SHA-256 contracts.”

Suspicions run excessive that is an exit rip-off of types, particularly contemplating their close to month lengthy silence. Their web site apparently had a staff web page as soon as, however now now not hyperlinks to it, with this firm seemingly fashioned in 2015 and registered in London.

Unusually, no administrators are proven within the registration documents. An individual named Naomie Pearl Jno Paul indicators for a lot of the filings with the businesses home, the most recent one being in April this yr which introduced they modified their title from HashCoin to Hashflare.

The CEO seems to be Sergei Potapenko, who additionally based Polybius in February final yr. In response to the Bitcoin Wiki, he based Hashcoin in 2013.

Hashflare’s staff web page has disappeared from their web site, however after all not from the internet. It seems very a lot an identical to that of Hashcoin, which says they’re an Asics producer.

The services themselves are claimed to be in Estonia, Tallin, with the cloud miner typically having an English and a Russian model of their communications.

They claimed to have over 1,000,000 customers, though we’ve seen the variety of 2.5 million customers thrown round, suggesting there are thousands and thousands of {dollars} at stake right here.

Hashflare has additional introduced new AML/KYC necessities, despite the fact that they appeared to have them applied already beforehand, with their full announcement revealed right this moment stating:

“As , the previous few months have been a troublesome time for the cryptocurrency market, which has additionally affected the operation of our service.

Now we have made each attainable effort with the intention to resolve the issue that has arisen – for example, we have now thought-about a wide range of technical options, which might have allowed us to decrease bills associated to upkeep and electrical energy.

Nevertheless, as a result of normal instability of the market, the actions we have now taken couldn’t considerably affect the present scenario.

For over a month our customers encountered a scenario when the payouts have been decrease than the upkeep charges, leading to zero accruals to the steadiness. As of 18.07.2018, the payouts have been decrease than upkeep for 28 consecutive days.

BTC mining continues being unprofitable, in gentle of which we wish to inform you that on 18.07.2018 we have been compelled to begin disabling SHA {hardware} and right this moment, on 20.07.2018, cease the mining service of energetic SHA-256 contracts in accordance with clause 5.5 of our Phrases of Service, that are required to be accepted when creating a purchase order and are the idea of concluding the contract.

We anticipate that the cryptocurrency market scenario will stabilize within the nearest future and we will supply our customers new advantageous options.”

Article Title: On June the 22nd 2018, a cloud miner said their “web site might be present process upkeep and could also be unavailable tomorrow.”

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Lewis

Lewis is a freelance journalist, digital nomad, and crypto enthusiast based out of US. As an avid observer of the rapidly evolving blockchain ecosystem he specializes in the FinTech sector, and when not writing explores the technological landscape of US.
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