fbpx
Money

Bitcoin Miner Scam From Kodak Collapses, Shut Down By SEC

The Kodak-branded bitcoin mining rigs unveiled at the CES technology trade show this year will no longer be available to mine for customers. Amid scam accusations, the company behind the Kodak Kashminer crypto mining scheme has reportedly confirmed the plan has collapsed, citing intervention by the U.S. Securities and Exchange Commission.

Kodak-Branded Mining Rig is No More

A Kodak-branded mining rig was on display on Kodak’s official stand at the CES technology trade show in Las Vegas in January. The Kodak Kashminer is a product of Spotlite USA, one of many companies that license the Kodak brand to put on its own products. The miner was unveiled at the same time as Kodakcoin, as news.Bitcoin.com previously reported.

According to Spotlite’s CEO, Halston Mikail, the company planned “to install hundreds of the devices at the Kodak headquarters in Rochester, New York, to take advantage of cheap electricity offered by an on-site power plant,” the BBC reported. He also claimed that “80 devices were already in operation.”

However, Kodak told the news outlet that “the venture was never officially licensed and that no devices had ever been installed.” While Spotlite is licensed to use the Kodak brand for LED lighting products, it is not licensed to use the brand for mining rigs. A company spokesman was quoted explaining:

While you saw units at CES from our licensee Spotlite, the Kashminer is not a Kodak brand licensed product. Units were not installed at our headquarters.

Change Of Plans

The licensee planned to rent out the machines for an up-front fee and let customers “keep a cut of any bitcoins generated,” the news outlet detailed. Spotlite’s promotional material claims:

An up-front investment of $3,400 would generate earnings of $375 a month for two years by mining bitcoin.

However, the publication pointed out that critics have called this offering a scam, citing unachievable and misleading profit advertisement. Furthermore, the calculation does not take into account the mining difficulty that has been increasing.

Economist Saifedean Ammous was quoted asserting,”there is no way your magical Kodak miner will make the same $375 every month,” noting that anyone signing up for this service “would have made a loss on their investment.”

Claims of a steady income from bitcoin mining are often debunked. Each miner earns less from the shared pool of block rewards and mining fees as more people add their mining hashpower to the network. Since the beginning of the year, bitcoin miners’ revenue has declined from approximately $33 million per day to less than $10 million.

Kodak-Branded Bitcoin Mining Scheme Collapses

Mikail told the publication that “the U.S. Securities and Exchange Commission (SEC) had prevented the scheme from going ahead.” Instead of renting out mining capacity, his company will now “run its mining operation privately with equipment installed in Iceland,” he described, confirming that “the [original] plan has collapsed.”

This story originally appeared in Bitcoin. Image courtesy of CES2018 via YouTube.

Join The Discussion

Five Takeaways From President Macron
‘Gilets Jaunes’: Five Takeaways From President Macron [Video]
Six Dead And Dozens Hurt In Nightclub Stampede In Italy
Six Dead And Dozens Hurt In Nightclub Stampede In Italy [Video]
Paris On Lockdown Ahead Of Planned Protests
Paris On Lockdown Ahead Of Planned Protests [Video]
Luxembourg To Become First Country To Make Public Transport Free
Luxembourg To Become First Country To Make Public Transport Free
Worldwide Adoption Keeps Growing, 1,500 Restaurants In Denmark Accept Bitcoin
Worldwide Adoption Keeps Growing, 1,500 Restaurants In Denmark Accept Bitcoin
Half The Crypto Market Eliminated In Less Than A Mont
Half The Crypto Market Eliminated In Less Than A Mont
Singapore Residents Targeted In Crypto Scams, $78,000 Lost
Singapore Residents Targeted In Crypto Scams, $78,000 Lost
Brazilian Mining Company Under Investigation, Says It Can’t Pay Investors
Brazilian Mining Company Under Investigation, Says It Can’t Pay Investors
Visual Trends To Be Aware Of In 2019
Visual Trends To Be Aware Of In 2019 [Infographic]
How To Get Sponsored Posts For Your Blog
How To Get Sponsored Posts For Your Blog
The Advantages YouTube Ads Have Over Facebook Ads
The Advantages YouTube Ads Have Over Facebook Ads [Video]
7 Tools Will Help You Kick Butt In 2019
7 Tools Will Help You Kick Butt In 2019 [Video]
Instagram's Testing Side-Scrolling Feed View, Similar To Stories
Instagram’s Testing Side-Scrolling Feed View, Similar To Stories
The 10 Best Instagram Tools For 2019
The 10 Best Instagram Tools For 2019
Pinterest's Recommendation Algorithms Are Improving
Pinterest’s Recommendation Algorithms Are Improving
YouTube Launches YouTube Stories, Prominent Creators Only
YouTube Launches YouTube Stories, Prominent Creators Only [Video]
Wish You Were Smarter
Wish You Were Smarter? These 4 Brain Hacks Can Help You Get There
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Your Environment May Affect Your Eyes More Than You Realize
Your Environment May Affect Your Eyes More Than You Realize
Why Hotels Want You To Stop Instagramming Your Vacation
Why Hotels Want You To Stop Instagramming Your Vacation
Five Takeaways From President Macron
‘Gilets Jaunes’: Five Takeaways From President Macron [Video]
Six Dead And Dozens Hurt In Nightclub Stampede In Italy
Six Dead And Dozens Hurt In Nightclub Stampede In Italy [Video]
Paris On Lockdown Ahead Of Planned Protests
Paris On Lockdown Ahead Of Planned Protests [Video]
The Advantages YouTube Ads Have Over Facebook Ads
The Advantages YouTube Ads Have Over Facebook Ads [Video]