Over 10000 people were hoodwinked by Bitcoin mining startup, feds say

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On Wednesday, a Securities and Exchange Commission sued a owner of a now-shuttered Bitcoin mining company, alleging that it committed $19 million value of rascal in a Ponzi scheme.

According to a SEC’s polite complaint, Homero Joshua Garza and his companies, GAW Miners and ZenMiner, sold some-more than 10,000 “investment contracts representing shares in a increase they claimed would be generated from regulating their supposed computing energy to ‘mine’ for practical currency.”

Between Aug and Dec 2014, a companies sole $19 million value of these contracts, dubbed “Hashlets.”

Defendants’ Hashlet sales had many of a hallmarks of a Ponzi scheme. Because defendants sole distant some-more computing energy than they owned and dedicated to practical banking mining, they due investors a daily lapse that was larger

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