[2018-07-21] Cloud-Mining Service Hashflare Disables Bitcoin Mining Contracts

[BitcoinArsenal]

Hashflare, one of the largest cloud-based mining service, abruptly shuts down Bitcoin mining contracts. In an official statement, Hashflare stated that they would disable their mining hardware and would effectively terminate all SHA-256 based mining contracts.
Full article on CCN

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[milewilda]

Getting some lines from the article:

Hashflare hasn’t mentioned what they would do regarding the funds that were present in user accounts prior to the cancellation of their contracts leading to a lot of outrage and the suspicion of the whole ordeal being an exit scam. Especially given that they sold contracts even after 21 consecutive days of unprofitability.

They would really be heading on that way and the fact they do still accept purchase of contracts while they are on unprofitable period? Its totally clear on what would happen next and now they do add up KYC.

[veleten]

thats both expected and unexpected,since the mining has been unprofitable for quite a while
but the image damage could be more than the coin loss,effectively making Hashflare not trusted
as for the exit scam,I doubt they will steal the funds,but for sure,will "save" on compensations for the already purchased contracts
yet another reason to say "cloud mining" and think -scam

[squatter]

thats both expected and unexpected,since the mining has been unprofitable for quite a while

I'm seeing allegations that these terms -- "if mining remains unprofitable for 21 consecutive days the Service is permanently terminated" -- were added in June. Obviously, those party to 12-month, etc. agreements didn't agree to those terms and are being swindled out of their contracts. Is there really no compensation offered if they take payment upfront for a year, then terminate the contracts a few months in? Just because they have the right to terminate contracts doesn't mean they have the right to steal peoples' money where they didn't provide the contracted services.

They're a UK company. I can't be bothered to research UK law, but they're common law, so this should be patently illegal. If this is truly their position, this is no different than an exit scam.

The only thing cloud miners are good for is speculative mining of low-difficulty coins near launch. Long term contracts are like using exchanges to store money. You're bound to get fucked eventually.

[Atomicc]

The owners of this company can not make an easy exit scam, because they are known by name, and company is registered in UK. They broke a few EU laws, and they will finish on court.
Check their Facebook, thousands of unsatisfied customers.
- first, they convert lifetime contracts to one year contracts
- they stop profit payments because of "lower profit than maintenance", how another mining companies are still profitable (especially now when BTC is over 7500USD)?
- they did not improve their facilities and not make any actions to try to optimize their costs
- they cancel the agreements according to specific article in their agreement. Unfortunately for them that article is in collision with EU low, and there is no contract what can be above the European Union laws.
- there are people what invest tens of thousands in their "mining", I think they will not let it...
- they sold their services to USA citizens. If one of their USA investors report them for fraud in USA, they are responsible by USA law... what will be interested...

[snipie]

We in bitcointalk have always warned people about cloud mining starting from the shady projects that will be likely a scam to the trusted ones with no profitability

The owners of this company can not make an easy exit scam, because they are known by name, and company is registered in UK. They broke a few EU laws, and they will finish on court.

They will figure out something to avoid being in court.. They will create an ICO, or Hashflarre token.

[nutildah]

Genuine question:

Has there ever been a "cloud mining service" that wasn't a scam, or at least end up being a scam?

[odolvlobo]

I'm curious about why people are complaining. Would you really want to continue mining if your daily revenue is $5 and your daily maintenance fee is $7?

[1Referee]

Genuine question:

Has there ever been a "cloud mining service" that wasn't a scam, or at least end up being a scam?

No.

Every cloud mining service is set up with the prior knowledge that the house always wins in the long term, and in case the house isn't winning organically, the service will make sure it wins artificially. In other words, it's impossible to beat the house regardless of how profitable cloud mining is, which should be clear by now after all the years. It's not only newbies falling for it, but also members who've been here long enough to know better.

The block halving in 2020 will be the perfect opportunity for cloud mining services to provably pay people 50% less. It will be a contract extermination bloodbath.

[InvoKing]

The block halving in 2020 will be the perfect opportunity for cloud mining services to provably pay people 50% less. It will be a contract extermination bloodbath.

Unless the bitcoin price will be the double it was before the halving of course 
Anyway better for every wise person to stay away from every cloud scamming services whatever trustworthy it looks like!

[IconFirm]

All cloud mining is either a scam, a ponzi, a ripoff or a combination of all three - always has been & always will be - but even more so when Hashcoins are behind it.

For those who didn't know, Hashflare are Hashcoins who are known scammers from way back when they "sold" miners to 100's of people but kept them for themselves in order to start their Hashflare scam. Their entire thread was eventually moved to the scam section:

https://bitcointalk.org/index.php?topic=417623.860

Also, now that Hashcoins have made so much money on their Polybius ICO scam, they don't really need Hashflare anymore......

I tried warning peeps so many times this would happen over the last year or more, but greed/stupidity made them blind, as it does....

[richardsNY]

Unless the bitcoin price will be the double it was before the halving of course  

I don't think it will help much with how the difficulty keeps increasing consistently. It will at most delay the process of having worthless mining shares. The price last year went up like 2000% and cloud mining was still a 'I'm picking up pennies' activity. The price just can't outperform the increasing difficulty, and that won't change. I hope that authorities worldwide will stand up and do something about the cloud mining industry. In almost every aspect of the crypto industry they seem to jump in but cloud mining isn't part of that apparently. The only case I remember was that genesis mining had to withdraw itself from one state....

[squatter]

I'm curious about why people are complaining. Would you really want to continue mining if your daily revenue is $5 and your daily maintenance fee is $7?

Some of the complaints I've seen are more like this: Daily revenue $5, daily maintenance $7, upfront 12-month payment $84 -- where they stop paying daily revenue after one month, no compensation.

People who pay for cloud mining BTC are obviously not savvy investors, I get that much. And terminating contracts is fine. Pocketing money for services not provided isn't, though.

[vit05]

Several businesses related to mining in clouds have been disabled in the last months. The reality is that many of them never re-raise the money earned on new rigs. They used it for speculation.

Sending money to these companies is an absurd risk. Much better to buy Bitcoin directly.

[oerdugan]

 Hello,  i invested 70usd in august 2017 but my balance still 0.0000159 BTC ! Support does not help. What should i do? is it scam this website?

[Slow death]

Genuine question:

Has there ever been a "cloud mining service" that wasn't a scam, or at least end up being a scam?

time is showing that all cloud mining become scam


after a long time of silence they resolved to answer:

HashFlare mining suspension: reasons, aftermath and answers to questions

they speak of 6 points, which in my opinion are 6 shocking points