Bitcoin Forum

I just came across this news, we all know that most of the cloud mining companies either turn into a failed project or a scam. This is another example of exposed scam and I think this is a positive thing for the bitcoin's reputation in the long run.

Detailed News: Creators of Bitcoin Miners Face $12 Million Fine for 'Ponzi Scheme' Scam (http://thehackernews.com/2017/06/bitcoin-mining-ponzi-scheme.html).

Many newcomers are attracted to such schemes and they end up with losing their investment. If you are one of the user thinking to give a try to such cloud mining site, then consider this as a warning bell.

Who even falls for these cloud mining scams anymore, it's been a fairly well known fact within the community that if it was more profitable for them to run their miners alone they would do it, so by selling it to you they make more money. Who wasn't expecting for them to go into a state of full-scale greed and start scamming people out of their money through even more illicit means?

This bad publicity for bitcoin,because all the people who are not familiar with btc,crypto and mining don`t know the difference between mining and cloud mining.
Some of them might think that bitcoin is a big ponzi scheme and scammers safe haven.

They do really deserve such fee and much better to put them on jail. Those bastards are making advantage on newbie which do always believe on easy rich scheme.Hope this news would be a warning for all those scam cloud mining sites that are operating now and a warning for those who would plan to build one.This thing should not be limited on a certain place and should make it global.

Everyone knows that except to those bitcoin noobs who wants to make their bitcoin grow up without exerting any efforts. Bitcoin is very valuable these days. You can't just give it away. You need to study it first before jumping on an investment. Cloudmining is not a stable investment. We can't say how long will they pay. So better avoid them. Avoid HYIP sites.

Who falls for this? Newbies and people that have not visited this forum, those scam sites look legit and if you begin reading you may be tempted to invest, it is only after you read the forum when you realize all of those sites are nothing but a scam and you will no longer notice them.

Unfortunately the large ad platforms have no issues with these sites and hence I have seen numerous ads through google adwords. Since they target those who have interest in bitcoin or crypto currencies, even 5% of the users are enough for scammers. It is very unfortunate that most of the newbies directly invests in such platforms without doing any research.

It's annoying that some of the earliest adopters of Bitcoin were ponzi schemers. Some are managed by the same people over the years, moving from one digital currency to another. Bitcoin was a godsend for them I suppose. What surprises me is that they haven't moved to other crypto. You'd think the cheaper tx fees and quick confirmations would help extend ponzi lifespans, especially with those that pay every hour even. Go figure.

I remember seeing the same ponzi schemes accepting egold back in the day, I suppose then they switched to something else, but then with the emergence of bitcoin they were able to get away with their crimes indefinitely, I think they still accept bitcoin because bitcoin is the most popular cryptocurrency.

Newbies are always ridiculed for falling for such scams but people forget that its also these newbies that represent the new money coming into bitcoin and without them we would forever remain a small market with little prospect of growth.

We need to aid and treasure these newbies instead of making fun of their mistakes to the benefit of criminals.

I am hoping that the money now already worth $150 million can be returned to their rightful owners and not be taken by the government so that justice can really be served especially to the helpless victims of this fake Bitcoin mining scheme.

Let this be a great warning to many people who might be planning to introduce a same scheme to the public...once the program is over they can be facing criminal liabilities and they can not escape the hands of the law eventually.

Ponzi or pyramiding schemes has no place in Bitcoin.

Kinda sad that people are still falling for this kind of simple scam but I'd understand why they do it, people seeking profits are going to believe a lot and this company probably had a lot of influential people saying that it worked and such-- so people simply blindly follow this sort of thing and get caught up in it. First these companies look as if they're legitimate, they pay people and everyone seem to be happy.

Works like any sort of scam, when they go ahead and hit a certain point where they want to run with all the money that they've sated they were using to 'mine' all this time they'll simply make off with a ton of money. Since this is a Crypto, theirs no recourse to attempt to charge-back or something along those lines.

Sad, but it's going to be prone to happen in this sort of irreversible currency until people smarten up and don't follow something that shouldn't work.

I think there are many reasons behind it but I think that the major one is greed and it makes easier for the scammers to target those who are willing to take high risk for earning the handsome amount in return. Yes even such things might feel uncomfortable for most of us, I see it positively. Such news creates a bad impression about bitcoin but at the same time it builds awareness about it and prevents other users from becoming the victims of it.

After reading the article it reminds me of what i've done in the past, investing and trusting cloudmining company, in the beginning the site was working fine we got paid but after that the site turned to scam. So basically they're not a mining company they just used our money as a new member to reward the earlier joiners, i was newbie and didn't know what was the ponzi to be honest, i think people have to do research about the company before investing their money.