Riot Reports 147% Monthly Growth In Average Daily Run Rate of BTC Mined

Riot Reports 147% Monthly Growth In Average Daily Run Rate of BTC Mined

In February, Riot Blockchain saw a remarkable increase in average daily run rate of BTC mined compared to last December

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Nasdaq-listed cryptocurrency mining firm Riot Blockchain has demonstrated a remarkable monthly growth of average daily run rate of Bitcoins (BTC) mined, in February.

The United States-based firm has seen a 147% increase in the average daily run rate of BTC mined, against the average daily production run rate for December 2019, Riot revealed on March 5. Riot attributed the boost to its mining equipment upgrade. At the beginning of the month, it had 2,940 Bitmain S17s and 1,751 S9s machines, while by the end of the month, it was running 4,000 S17s.

Riot’s mining facilities upgrade

Riot Blockchain started deploying around 3,000 new units of S17 Pro Antminers as part of the full upgrade of its Oklahoma City mining facility, in January. The company purchased the mining machines from Chinese mining giant Bitmain. 

At the time, Riot anticipated that the upgrade would bring its aggregate operating hashrate at the Oklahoma City mining facility to approximately 248 petahashes per second, representing a 240% increase in hardware power efficiency compared to Riot’s mining hashrate.

Worth noting, Riot’s shares dropped by over 5% following the announcement that the company was planning to sell its cryptocurrency exchange, which was launched in the second quarter of 2019, to focus on BTC mining ahead of the halving in May of this year.

Mining issues in the run-up to BTC halving

As Cointelegraph reported last month, major mining hardware manufacturer Bitmain announced two new upcoming miners — the Antminer S19 and the Antminer S19 Pro. Both miners will have a power efficiency of 34.5+/-%5 joules per terahash.

In the meantime, Alex de Vries, the founder of the Digiconomist, asserted that 98% of mining rigs will never verify a transaction, resulting in an enormous and unproductive electricity expenditure. De Vries explained:

“The shocking thing is the average lifetime of a bitcoin mining machine is one and a half years, because we have a new generation of machines which are better at doing these calculations. So the rest are just running pointlessly for a few years, using up energy, and producing heat, and then they will just get trashed because they can’t be repurposed.”


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In February, Riot Blockchain saw a remarkable increase in average daily run rate of BTC mined compared to last December

Gemcoin Founder Admits to Fraud in $147 Million Scheme

Gemcoin Founder Admits to Fraud in $147 Million Scheme

Gemcoin mastermind faces 10-year prison sentence over $147 million cryptocurrency scheme

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Steve Chen, the mastermind behind the $147 million Gemcoin cryptocurrency scheme, has admitted to wire fraud and tax evasion in a plea agreement.

The 62-year-old Southern California resident agreed that he and other co-conspirators fraudulently promoted a cryptocurrency called Gemcoin (or Gem Coins) that helped fleece $147 million from 70,000 victims.

Chen, also known as “Boss,” reported an income of $138,000 in 2014 which is a far cry from the $4.8 million he now admits to pocketing that year. Chen used the proceeds to buy homes and pay for a gambling habit, authorities said.

Virtual Coins Backed By Nothing

Between July 2013 and September 2015, Chen ran a multi level marketing scheme to promote U.S. Fine Investment Arts, Inc. (USFIA) which rewarded investors first with points, and then with Gemcoins. 

These virtual coins were supposedly backed by gems mined by the company and could be traded on the USFIA platform.

While the value of the coins supposedly increased based on the company’s gemstone sales, in reality, the USFIA did not own or operate any gemstone mines. Instead, USFIA bought gemstones from commercial suppliers and assigned grossly inflated prices. 

U.S. Attorney Nick Hanna said in a statement:

“Mr. Chen’s promises to investors were as worthless as his non-existent mines and phony digital currency. This case should remind all investors that trappings of success may convey legitimacy, but everyone should exercise extreme care when considering giving hard-earned money to any outfit promoting trendy products and extravagant profits.”

Chen Will Compensate Victims 

Chen has agreed to pay back $1,885,094 in back taxes for 2014 as well as pay a civil fraud penalty and interest. 

He’s facing a sentence of 10 years in prison, a fine of at least $500,000, and he’s required to pay „full restitution“ to all the victims.


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Gemcoin mastermind faces 10-year prison sentence over $147 million cryptocurrency scheme

US CFTC Brings Action Against $147 Million Bitcoin Investment Scheme

US CFTC Brings Action Against $147 Million Bitcoin Investment Scheme

The CFTC has brought an action against now-defunct entity Control-Finance, which reportedly defrauded over 1,000 investors to launder $147 million in bitcoin

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The United States Commodity Futures Trading Commission (CFTC) launched action against a reportedly fraudulent $147 million bitcoin (BTC) scheme, fintech news outlet FinanceFeeds reports June 18.

On June 17, the regulator reportedly filed a complaint with the New York Southern District Court against now-defunct United Kingdom-based entity Control-Finance Ltd, which reportedly defrauded more than 1,000 investors to launder at least 22,858 bitcoin.

The CFTC also brings actions against the entity’s head, Benjamin Reynolds, stating that Control-Finance and Reynolds “exploited public enthusiasm for Bitcoin” from May 1, 2017, to October 31, 2017. The action seeks civil monetary penalties, including “permanent trading and registration bans, restitution, and disgorgement,” the report notes.

Citing documents by the CFTC, FinanceFeeds reported that Control-Finance was soliciting investors to buy their bitcoin with cash and deposit it with the firm, as they claimed to guarantee daily trading profits on the deposits through employed professional cryptocurrency traders. The alleged scammers were further sending portions of new clients’ BTC deposits to other customers, misrepresenting those as actual profits generated from crypto trading.

According to the report, Control-Finance suddenly took down its website on or around September 10, 2017, suspending payments to clients, as well as deleting advertising content from its profiles on social media including Facebook, YouTube and Twitter. Claiming that the firm would reimburse customers by late October or November 2017, the allegedly fraudulent entity reportedly diverted laundered bitcoin using crypto wallet service CoinPayments.

Recently, the British Financial Conduct Authority (FCA) issued a warning against a fraudulent firm posing as the Swiss Investment Corporation, an FCA-authorized firm offering crypto investments. At the time, the regulator also reported on another fraudulent entity that is a clone of global investment bank Goldman Sachs.


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The CFTC has brought an action against now-defunct entity Control-Finance, which reportedly defrauded over 1,000 investors to launder $147 million in bitcoin