That Minersource sticker is going to upset the precision heat vectors from doing their job and burn the unit out early.  BA ran a number of simulations but didn't account for the magnetic field variations of the glue between the sticker surface and metal casing.  That will cause a chain reaction and a tachyon pulse will emit static-field portal generation, and you may find yourself in the stone age running from dinosaurs.  Be wary!

The reward isn't factoring in the risk.  We take the risk of investing with a start-up that is entering a highly competitive field, late in the game, with an unproven track record.  It doesn't make financial sense to risk money on something that is likely to fail.

And you'll get it in August if you already ordered it, maybe, otherwise September or later when the price per gh will be twenty-five cents.

He won't liquidate the company so long as it protects him from prosecution or civil suits.  It would also require him to do something, which he isn't fond of doing.

My guess is, his lawyer told him to not say anything else until the MSD have come to terms with their negotiation, because there is a cease and desist and regardless of what the armchair lawyers are saying, the letter clearly states that Ken should not involve himself with the shareholders at all.  Until that ends, or the MSD gives him further instructions of what he can do, I don't suspect we'll hear from him again until then.  And it's also very possible his lawyer is the one who does the talking later on.

The resellers are probably just getting their PSU's to ship out.  Probably only the one miner was sent.  To put a lock on the compensation date.

Since the promised compensation is tied to the shipping date, it's my guess this one miner was shipped out to lock down the compensation metric against the going rate for shipping gigahash/price.  As the longer the delay was carrying on, the worse it was getting.

So now that we know when shipping started, one could figure out what the ratio is of miners that are in stock and shipping and gauge what the compensation should be.

Why else ship one miner and say shipping has begun?

Where's the prospectus to this?  It's not on the HL site that I can see, or on their barely put together website with no contact information.

Not sure what kind of research is going into vetting companies but this looks like someone started this about a month ago.

I'll buy some R60's when Canary sells them.  Trying to order anything off that Rockminer website from the U.S. didn't seem possible.

They use an offline test net, it's not on the live blockchain.  Assuming this since they say they aren't mining with the hardware.

There were some yes, there are posts in the main AMC thread from people who did eventually get them and had them hashing. 

  Thanks, I don't really want to fly to China at the moment, though if this goes on for a while longer maybe that would be a good idea.  Not sure they would let just any American walk into the building and talk to people.  Jack, have you been to Black Arrow?

Right... But it's perfectly legal for a Belize corporation (A real one) to sell on Crypto Trade to people not living in the United States.  As far as I understand it, Crypto Trade is not in the United States.  Wasn't it in Canada and then moved to Panama?  Who can keep track of all these operations and where they are supposedly based?  I know I can't.

It has to be on their radar.  Maybe at that time they didn't know anything about Bitcoin and weren't paying attention to these issues.  But recently the SEC and now the MSD have been more aware and have been fining and shutting down operations such as this.  Like anything, it has to be brought to their attention.  Undoubtedly someone complained to the MSD which started the investigation.  

I honestly don't know what your point is.  If you think that American operations offering unregistered securities are legal because they are still doing it, than you are wrong.  It is not.  Just like stealing cars is illegal even though it still happens.  The SEC and various State organizations have limited resources and can only investigate so many of these things at any one time.  That doesn't mean they won't get to them eventually.

Crypto Stocks can exist.  These laws only apply to the United States.  It's perfectly legal for a REAL Belize company to sell shares of unregistered securities on Crypto Trade.

It's illegal in the United States.  Why do you think this is going on? 

What a great deal for people trying to raise cash.  First, sell millions in unregistered securities.  Then when you get caught, you pay a $22,000 fine and continue business as usual.

Somehow I think that isn't the intent of the cease and desist order.

You can't have unregistered securities, you can't sell them either or trade them.  It's all illegal.  They don't just fine you and say, "Don't sell any more.  But ok, you go ahead and do whatever you want with the ones you sold already."

If that was the case, everyone would do it and just pay the piddly fine.

I'm not certain of my understanding of it.  I figured I'd just let Branny talk about it.  I believe what I said is true, but it may not be correct.  Better to let him answer your questions...

Is anyone here Chinese?  Does Black Arrow have a Chinese forum or anything that contains any additional information?  You would think that people who bought in from China and can drive over to their warehouse would have their own Bobsag to visit and take pictures and see what is going on.  Not quite clear why the people investigating are only from the West.

Note, that even if he registered these as securities you likely will not qualify as an accredited investor in the United States.  The law basically states that you need to have about 2 million dollars in net worth to be able to invest in such securities directly.  That is something that the SEC is working on changing due to crowd funding but the laws are not in place yet.  So he'd pretty much disqualify everyone here if he registered (Which he will have to do) and not to mention, everyone investing would need to register with the SEC and likely the MSD as well for that to happen.  I can't see too many people willing to do that.

Right now, he's barred from doing anything in relation to the investment fund.  That's what cease and desist means.  It doesn't mean "pay us a fine and then go ahead and keep breaking the law."

The thing you guys are missing is that the MSD states that Ken must cease operating the investment fund and acting on the investment fund.  That means Ken cannot give you a dividend.  He cannot operate the fund any longer.  Refunds are yet to be spelled out, but the cease and desist clearly states that he cannot act on the fund any more...

"NOW THEREFORE, it is hereby ordered that Respondents, their agents, employees and
servants, and all other persons participating in or about to participate in the above-described
violations with knowledge of this Order are prohibited from violating or materially aiding in any
violation of Section 409.3-301, RSMo. (Cum. Supp. 2012), by offering or selling unregistered,
non-exempt securities; from violating or materially aiding in any violation of Section 409.4-
402(a), RSMo. (Cum. Supp. 2012), by transacting business as an unregistered agent; from
violating or materially aiding in any violation of Section 409.4-402(d)..."

By transacting business as an unregistered agent.

He cannot ever pay you a dividend or offer shares or buy back shares or anything with shares.  If he does, he's in violation and could go to jail and face stiffer fines.

What Ken will have to do is abandon the original share holders, and if he wants investors he will have to get them in the traditional way.  Which he won't do.


The only reason he's going to tell you that it is business as usual is because he doesn't want to pay for your refund. If you don't ask for one, the deadline will end, and then he can close up shop without paying you.

Use your head, get your refund when the MSD offers it.  This investment is dead.  The owner is legally barred from operating it.