Cloud Mining Scams Alert: Real vs. Fraudulent Sites Explained

[Dareo]

Recently, many people fall into the trap of “cloud mining” and “guaranteed profit” platforms. Because these scams will continue to remerge over and over again, under different names, I thought it would be helpful to point out some of the more celebrated instances where scammers mimicked the name or the concept of an existing and legitimate business/project and took it to the scam level. Hopefully, this can save someone from losing their money.


1. Kodak vs. “Kodak KashMiner”

The real deal: Kodak is a well-known photography brand. They never operated any Bitcoin mining business.

The con: At CES 2018, there was a scam where the product was named Kodak KashMiner, where it is said that one can earn fixed monthly payments with hired equipment. They were nothing but smoke and mirrors in putting up Kodak as a brand name to sound trustworthy.

Kodak KashMiner on Wikipedia 
Business Insider Article


2. Mining Pools vs. BitClub Network

The actual thing: F2Pool, SlushPool, AntPool, etc. are legitimate mining pools: real miners put their hashpower in.

The fraud: BitClub Network offered to sell mining shares and described daily payouts. As it turned out later, they were fabricating revenues and operating a pyramid scheme and investors lost more than 700M in dollars before the founders were apprehended.

BitClub Network - US Justice Dept 
Wired Article


3. GainBitcoin / GB Miners

The truth: Mining within the country is possible in India yet they need massive infrastructural basis and open functioning.

The swindle: GainBitcoin (operated by Amit Bhardwaj) was a digital currency selling mining packages to thousands of customers. It was just a Ponzi masquerading as cloud mining, which imploded on itself and scattered a lot of casualties.

Amit Bhardwaj - Wikipedia 
CBI Press Release


4. USI-Tech

The truth on the ground: Cryptotraiding sites exist but none of them can deliver on the guaranteed daily profits through mining or trading.

The fraud: USI-Tech, a mining/trading site of Dubai, pretended to be a USI-Tech mining/trading site. It made claims of passive earnings on BTC packages, but was another Ponzi scheme that was closed down when regulators intervened.

USI-Tech on Wikipedia


5. OneCoin

The truth is in the pudding: Each cryptocurrency is made on a transparent blockchain verifiable by any person.

The scam: OneCoin had no blockchain at all. Sold as the Bitcoin murderer with promises of mining, it was actually one of the largest frauds in the history (stolen more than 4B$ as well).

OneCoin Wikipedia 
Investopedia Article


6. Scam Domains (Recent Examples)

Additionally, outside of the larger, well-known websites above, scam websites are continually being launched. A few reported ones include:

• pro-btmining.site [SCAM]
  
• foundrypro.net [SCAM]
  
• redparnet.site [SCAM]
  
• bitscontrole.com [SCAM]
  

These sites typically:

• Show fake balances in your dashboard.
• A trick of asking you to pay a withdrawal fee in order to release the money.
• Later lock you out after you decline to send further money.

Key Takeaways

• It is a red flag when I am told about fixed returns of mining. Difficulty in mining, hardware and electricity cost define profitability; it cannot be assured.
• Always verify domains. And scammers adore making websites that resemble very closely the authentic projects.
• Do your own research. Every mining and investment platform should be researched by independent reviews and in forums before trusting it.

Remember: Bitcoin mining is capital-intensive and competitive. There are no shortcuts. If a site is promising you effortless, risk-free money than most likely those are out to get your money rather than offering you their own.

Stay safe out there!


Question for the community: 
Have you discovered recently new mining scam sites that everyone should know about? We should construct a list in order that greenhorns do not get entrapped.

[robelneo]

Question for the community: 
Have you discovered recently new mining scam sites that everyone should know about? We should construct a list in order that greenhorns do not get entrapped.

You mean a cloud mining site? The developers of these cloud mining sites are quick to relaunch and take them down. They purchase a cheap domain, configure the script they are using, modify the text, and then launch another one. Once they’re profitable and have been reported as a scam, they take it down.
There have been hundreds of these in the past; from time to time, there will be reports here, so just wait and include it in your list.

[examplens]

Question for the community: 
Have you discovered recently new mining scam sites that everyone should know about? We should construct a list in order that greenhorns do not get entrapped.

You mean a cloud mining site? The developers of these cloud mining sites are quick to relaunch and take them down. They purchase a cheap domain, configure the script they are using, modify the text, and then launch another one. Once they’re profitable and have been reported as a scam, they take it down.
There have been hundreds of these in the past; from time to time, there will be reports here, so just wait and include it in your list.

I created such a list a long time ago. I have been updating it regularly for a while, but I am running out of time for something like this.
Everyone is free to give their suggestions, and I will be happy to update the list

[SCAM ALERT] List 950+ scam websites (Updated 27. July '24)

[robelneo]

Question for the community: 
Have you discovered recently new mining scam sites that everyone should know about? We should construct a list in order that greenhorns do not get entrapped.

You mean a cloud mining site? The developers of these cloud mining sites are quick to relaunch and take them down. They purchase a cheap domain, configure the script they are using, modify the text, and then launch another one. Once they’re profitable and have been reported as a scam, they take it down.
There have been hundreds of these in the past; from time to time, there will be reports here, so just wait and include it in your list.

I created such a list a long time ago. I have been updating it regularly for a while, but I am running out of time for something like this.
Everyone is free to give their suggestions, and I will be happy to update the list

[SCAM ALERT] List 950+ scam websites (Updated 27. July '24)

Apology, brother, I am aware of your list, but I forgot to mention that we already have one, created 6 years ago. It’s probably one of the oldest and longest scam lists. If OP wants to make his own, he can do so.
These lists are informative to help investors be made aware of how these scammer works.

[albon]

6. Scam Domains (Recent Examples)

Additionally, outside of the larger, well-known websites above, scam websites are continually being launched. A few reported ones include:

All of the domains that were reported seem to have gone down by now,, but it’s likely that the scammers will create more new domains, promising investors high, guaranteed profits through so-called cloud mining. Once one of their schemes succeeds, they usually move on to a new domain under a different name.

I hope people don't trust those who first contacts them on social media or apps like WhatsApp, Telegram, or Discord, trying to lure them with promises of big profits. Don't trust, but verify. Don't rush to deposit your money. Do your own research and I strongly advise everyone to avoid new websites that have no track record or reviews.

In addition, I think updating the topic created by @examplens would be better than maintaining two separate threads, so we can keep a single reference point for everyone to return to instead of having too many active topics.

[Dareo]

[quote author=albon link=topic=5556124.msg65717425#msg65717425 l.

In addition, I think updating the topic created by @examplens would be better than maintaining two separate threads, so we can keep a single reference point for everyone to return to instead of having too many active topics.
[/quote]
Thanks. You are correct, and fraudsters go to different domains and repeat the same tricks, most of the time using WhatsApp or Telegram. I did this thread to encourage new people to keep abreast of new examples rather than to be repetitive. I concur that it is best to maintain in one location, and I am open to contributor to this post or the original thread to make it more useful to the general population.

[examplens]

Apology, brother, I am aware of your list, but I forgot to mention that we already have one, created 6 years ago. It’s probably one of the oldest and longest scam lists. If OP wants to make his own, he can do so.
These lists are informative to help investors be made aware of how these scammer works.

No problem.
In addition to exposing the scam, I had another motive for creating such a list. There are fewer and fewer free domains with a good name, and the market for used domains is quite active. Lists like this should help you identify domains with a bad history. For example, someone starts a business, finds an excellent used domain, buys it for a significant amount, only to find out later that the domain is on various blacklists and that it was used for online fraud.

Thanks. You are correct, and fraudsters go to different domains and repeat the same tricks, most of the time using WhatsApp or Telegram. I did this thread to encourage new people to keep abreast of new examples rather than to be repetitive. I concur that it is best to maintain in one location, and I am open to contributor to this post or the original thread to make it more useful to the general population.

If your efforts help prevent even one person from falling for a scam and becoming a victim, that's a success. So, go ahead.