Bitmine goes bankrupt

Dubious business with Bitcoin computers headlined a news magazine already in March 2014 on the Ticino company Bitmine. Now Bitmine is broke and has filed for bankruptcy, as the company wrote in an open letter on his website.

Bitmine sold special computers that are used for mining of the crypto currency Bitcoin. Bitmine presented in Ticino manufactures such equipment and sold them – against pre-payment – for 6,000 francs apiece. At the height of Bitcoin hype early 2014 a seemingly profitable business: Bitmine sold claims to computer for around 12 million Swiss francs.

However, many customers complained in online forums about it soon, that paid computer had never been supplied by Bitmine. They had partially bought for tens of thousands of franc. Some of those who actually received the ordered computer but complained about faulty and less powerful units, as originally promised by Bitmine.

When asked about the allegations said Bitmine CEO Giorgio Massarotto in March 2014: “We had problems with our sub-firms in China and Italy. But now we have seen three weeks ago on track to produce 200 units a week and are confident that we have caught up with the delays soon. “Bitmine wanted also to all those who have tired of waiting, install powerful free chips by 50 percent. He continued: “There is a gold rush.”

From this gold rush is however not much to read: A lot more goes into detail on the alleged reasons for the failure. Especially problems with suppliers in China have driven the company into bankruptcy: About eight million francs a Chinese manufacturer of computer chips had been paid. The products supplied were, however, had poor quality or were not delivered. Furthermore, the decay of the value of Bitcoins and problems in the manufacture of machines of the company would have added.

Hope that customers will receive back after the bankruptcy nor money, the company scattered equal to itself: “It will not return your money, but we hope that this gives you an honest look at the reasons why the money was lost,” write the company owners in the last sentence of her open letter.

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