Really?

That is not what your internal SKYPE chats indicate liar.





http://ia902308.us.archive.org/32/items/gov.uscourts.mowd.117531/gov.uscourts.mowd.117531.42.7.pdf

Pictures... video?

Be a good idea for others to have later that could go through same issues.

Mining Hardware? None.
Group Buy for Mining Hardware? None.

Wrong part of the forum right?

The pure isopropyl bath then horizontal sheering twist?

I don't envy you having to do this. Seems monumentally hard.

http://www.overclock.net/t/1231696/how-do-i-remove-heat-sinks-that-are-bonded-with-a-thermal-adhesive

Google foo. Do it at your own risk obviously.

https://www.youtube.com/watch?v=f9cQ1PbXzuo Video removal.

 Former customers warn people off Avalon re-branding even with a paid spokesman assurance they have changed.

There is certainly been no reasonable explanation or apologies from Avalon or the executives and paid spokesman for this new company as to what happened with regards to chips and the millions in dollars in damages it caused the community. There is certainly no reason to purchase from Avalon or Avalon re-branded given the unlikelihood their products will fail to come close to ROI or break even for miners. Nothing at this stage is really going to break even so waiting for products that are likely even worse than existing products is simply not a good strategy. If you are still buying there are others delivering right now. No need to wait on Avalon gear if you are still engaged in mining ASICMINER, BITMAINTECH and SPONDOOLIESTECH are your best and only real options currently.




It is November... anything in the wild besides the fubar version by Technobit that will certainly ship to you with significant delays?

  SP20's slip and SPTech offers compensation.

So we see that for the first time SPTech has slipped on a delivery deadline but is offering compensation. In the past compensation was offered to missed technical specifications but that compensation was offered in October after shipments made in August. Given the honesty and direct nature of the Guy and the SPTech I think consumers are still well protected if you are still buying mining equipment from SPTech. Price and ROI are still the biggest worry for all customers in the current depressed market. This is a thumbs up and thumbs down situation so it is an over all push on reliability.

Edit: Guy responds immediately to when the compensation processing will start. This team is on top of communications as always.


SP31s ship on time and arriving at customers doors.


Shipping units fairly quickly is a positive sign as well.

Compensation and ship all SP20s by Monday.

First real slip in timeline we've seen. But with compensation I suspect customers will be happy at least in that regard. How long for compensation?

Using BTC... you could cut out a lot of the need to bribe / fees etc.

I think BFL was hoping no one would track this Gleb. But sticking 1 million in like that was the DUMBEST move possible. Red Flags everywhere. I think they got scared and started looking for ways to get the money hidden.

Look at what was going on with BFL at the time.

1. Lawsuits started coming.
2. DA was looking at them.
3. Houses were being bought.
4. No accountant to help them keep things "hidden" or at least be less conspicuous. Look at the accountant talking on Skype particularly about keep the amounts down.
5. Personal loans from BFL.
6. Personal spending on company credit cards.
7. Extensive overseas trips by BFL even though there no real sales being generated after the 65nm debacle.
8. Expense accounts in BTC for major members of the team.
9. Extensive adverting campaigns.
10. Extensive booth purchases for conferences where they were paying a high premium to be the only mining company at a show.

Money Laundering a Hypothetical Guide Part 1: The Basics

Step 1.  “Placement” (also known as) Deposit your cash in a bank.

Fact: BFL sends 1 million to itself disguised as purchase from HashTrade. Converts the BTC through BitPay to their own accounts as USD.

Next to how you made your money, this is the riskiest phase of the laundering process. To prevent banks from reporting you to the government, keep cash deposits to well below $10,000 and spread it out over 160 accounts in 20 or more banks.

Conclusion: BFL failed at this step miserably.


Step 2. “Layering” (also known as) Move your money around like crazy.

Fact: BFL was layering see expense accounts of BFL executives. Respin boards, buying houses, cars etc as well as over paying for engineering of miners to their 'partners' in the scam. Exchange currencies, buy luxury goods, spends on rents for buildings, spas and burn in rooms or off site server locations.

This is the trickiest and possibly most fun stage of the laundering process. Try changing currencies with 20%. Buying expensive items like houses, cars, and art work with 30%. Investing in legitimate businesses with the final 50%. The point is to make the original dirty money impossible to trace.

Conclusion: Whoops failure too slow and not diversified enough to hide it. FTC has evidence after seizures of laptops etc.


Step 3.  Integration. Your 1 million dollars should look like it came back to you as legit legal transaction.

Fact: Whoops Gleb found out it wasn't pretty easily. Now it is clear HashTrade and BFL are laundering the BTC.

Follow up questions:

Was BitPay involved directly with this scheme and did they have full knowledge?
Did BFL do this BEFORE they hired the accountant?
I wonder what the accountant they hired had to say about it?

Obviously not enough if you can't convert readers to your narrative.

Hypothetical Example.

I'm a drug dealer with illegal drug revenue denominated in BTC worth 1 million dollars. I have another partner pretend to send this same BTC to my Bitpay account as payment for imaginary goods. I then convert those BTC with Bitpays knowledge and cash out that million to a bank account in USD.

Nothing illegal right?

Bitpay, BFL and HashTrade will all have to explain their roles. Bitpay has a very close relationship with BFL. With laptops now in FTC possesion any emails will likely be available to the Feds. I suspect BitPay should get a lawyer asap regarding this matter as a precaution.

If they did nothing wrong they would be prudent to immediately distance their company from BFL and provide their lawyers with all the emails, communication and get out front of this problem. Better help the FTC wherever possible so as to avoid more digging in their dog patch.

Wouldn't anything over 10k USD give Bitpay pause given the regulatory climate as well as the nature of the company involed. Bitpay was well aware of problems and concerns customers had with fraud from BFL considering they shared a booth at conferences.

We would like to see the EMC logs at that time... quite probable they were the cause.

2 years later his own words prove he was instrumental in burn in mining with customer rigs, covering up the fact and hiding tapeout dates for the chips... oh the lies, fraud and theft. What a piece of work.

IRS has been informed about these transactions? This seems to be worse for Bitpay if they were operating as an exchange without a license to do so. Bitpay seems they were doing  BFL a special service doesn't it? Legally what US laws were broken by Bitpay and BFL?

Shakes head. Still no love from Technobit for some customers.

Here is a plan for you Mr. Zipkin.

1. Pay back your customers.
2. Stop stealing from people.
3. Do an honest days work.

Yes yes they were.