Bitmain Advised to Rescind U.S. IPO Plans Due to Association with BitClub Ponzi

[cheezcarls]

Bitmain is allegedly in hot water for selling mining equipment to the notorious BitClub Network, an infamous Ponzi scheme which defrauded victims of over $722M. Recent reports suggest that Bitmain is being asked to rescind its U.S. IPO due to the investigation.

Dark clouds are hovering over the hardware manufacturer as an alleged investigation heats up, but the details are still forthcoming.

To read the full article, click here

Oh well, this is the price they’re gonna pay because of associating with a ponzi scam.

Assisting a fraudulent company even for just a little is still unacceptable. Even if they didn’t know that it was scam before, they should be doing their own research and common sense rather than getting convinced easily about BitClub’s scammish plans.

I’ve seen some of my Facebook friends and contacts promoting BitClub before and encouraging me to join under their network. However, they cannot penetrate my mind that easily because I know from the very beginning that BitClub was a ponzi scam.

[gentlemand]

Let's see what their actual association with it is. There's no details in there. I wonder why it would be anything beyond selling them hardware in which case there's nothing to answer for.

I'm impressed Bitclub actually bought any gear at all.

[HeRetiK]

Let's see what their actual association with it is. There's no details in there. I wonder why it would be anything beyond selling them hardware in which case there's nothing to answer for.

It's not that I have much sympathy for Bitmain, but getting into legal troubles for merely selling mining equipment to the wrong company does seem a bit excessive. Maybe it's just a way of "playing it safe" and covering all their legal bases?

[stompix]

Let's see what their actual association with it is. There's no details in there. I wonder why it would be anything beyond selling them hardware in which case there's nothing to answer for.

It's not that I have much sympathy for Bitmain, but getting into legal troubles for merely selling mining equipment to the wrong company does seem a bit excessive. Maybe it's just a way of "playing it safe" and covering all their legal bases?

They didn't just sell
There is an interesting topic about bitclub going down here
People from bitmain were meeting with the operators of bitclub, and another familiar face also  , and main knew all the time how much gear they've sold to them and how their claims of buying millions in equipment were fake but never denied them, they've kept quiet.
And of course, there is also the possibility of bitmain actually helping them with a bit of hash rate to fake the stats, wouldn't be surprising

[HeRetiK]

It's not that I have much sympathy for Bitmain, but getting into legal troubles for merely selling mining equipment to the wrong company does seem a bit excessive. Maybe it's just a way of "playing it safe" and covering all their legal bases?

They didn't just sell
There is an interesting topic about bitclub going down here
People from bitmain were meeting with the operators of bitclub, and another familiar face also  , and main knew all the time how much gear they've sold to them and how their claims of buying millions in equipment were fake but never denied them, they've kept quiet.
And of course, there is also the possibility of bitmain actually helping them with a bit of hash rate to fake the stats, wouldn't be surprising

Thanks for the link, Bitmain just gets more likeable by the minute. In that case I'd also keep my head down, jesus christ.

[Harlot]

It's either this scandal or Micree Zhan who will finally put a nail in their coffin. They won't really last in the US  market with scandals like this one especially at this very early stage and it would really be a good idea to back out their plans of a US IPO since their stock prices would just be affected at their first trading day. If they still plan to go thriugh with their IPO they need to wait this out first until they are out of the headlines so that their stock performance won't be affected.

[CryptoBry]

Let's see what their actual association with it is. There's no details in there. I wonder why it would be anything beyond selling them hardware in which case there's nothing to answer for.

It's not that I have much sympathy for Bitmain, but getting into legal troubles for merely selling mining equipment to the wrong company does seem a bit excessive. Maybe it's just a way of "playing it safe" and covering all their legal bases?

They didn't just sell. There is an interesting topic about bitclub going down here
People from bitmain were meeting with the operators of bitclub, and another familiar face also  , and main knew all the time how much gear they've sold to them and how their claims of buying millions in equipment were fake but never denied them, they've kept quiet. And of course, there is also the possibility of bitmain actually helping them with a bit of hash rate to fake the stats, wouldn't be surprising

I am sure there must be more than just a seller-buyer association otherwise it would be illogical to further investigate the whole matter. I have known BitClub for a long time because I was also recruited into it but since I really doubted the whole system they were using I just ignore them. Well, I have to be honest that passive income programs can indeed be truly attracted to many, especially for a guy like me who is technically-challenged. Let's hope that something good can be coming out of this mess and any accountability can be established so that this can be another big lesson to all never to be associated with any possibly scam programs. There would be more coming scam programs like BitClub and they can be creatively packaged in many ways and appearance attracting many innocent victims along the way. We really have to be careful...

[Kyraishi]

As much as Bitmain has a bad reputation around the crypto circles - I doubt that simply selling hardware to someone is a demonstration of actual 'association'.

Could they have done their due diligence better by sniffing out the scam through the obviously inflated returns that are being promised? Absolutely. But does selling hardware to them without endorsing the scheme necessarily make them a co-conspirator? It's doubtful to me and legally I wouldn't think that there is any grounds to prosecute them on.

This news will impact bitmain's PR more than anything, and of course their IPO. But they're likely not going to face legal repercussions for Bitclub's actions since they're two different entities.