Kodak Bitcoin Mining Scam And The Decision Of SEC On It

The Reasons Behind The Kodak Bitcoin Mining Scam

In the bitcoin realm, the plan has collapsed where it was to launch Kodak branded bitcoin mining computers after the venture failed to obtain a license to use the Kodak name with the US SEC saying to have halted the plan and effectively prevented the KashMiners computers from being rented out as originally intended. 

The Kodak branded mining computer was thereby displayed at the Consumer Electronics Show in Las Vegas as the critics have quickly called the technology to be a scam. 

It was therefore introduced as the Kodak KashMiner which is a bitcoin mining machine and that could be rented to prospective miners for two years for a $3,400 fee that included the equipment cost, and air freight export license, export customs clearance as well as the US customs duties and clearance. Keeping the cut of the profits that were mined, customers would reportedly earn $375 per month for the course of the contract. However, it did not factor in that these promising profits are becoming progressively more difficult as anyone who took this risk could have faced a loss. 

In this scenario, to mine the cryptocurrency, it is the computer solving mathematical problems working to verify crypto transactions. The critics determined that after doing the math to make the scheme play out according to the plan, the bitcoin would then need to retain an average price of $28,000 per coin over the period as the price of Bitcoin dropped to less than $6,700 per coin 

It came to be noticed that additionally according to the BBC, it is the third-party company responsible for the Kodak miner, Spotlite USA that never licensed Kodak’s brand for use on the machine as it was rebranded version of Antminer S9 which is a miner made by the Chinese company. Hence the CEO of Spotlite USA Halston Mikail commented that the company continues mining privately with the equipment installed in Iceland rather than renting the ability out to others. 

Brooklyn Based Bitcoin Miner Was Warned By FCC. What Was The Reason?

Is it possible that the Bitcoin mining devices could put you in jail?

Hence it is possible that for the first time, the Federal Communications Commission has now ordered the shutdown of a bitcoin mining device and that was thereafter causing interference in what is the 700MHz LTE network thereby for T-Mobile in Brooklyn, New York. 

The Antminer S5 miner according to FCC caused harmful interference generating spurious emissions on T-Mobile’s broadband network. The interference according to the agency stopped after the device was switched off. 

The device’s owner, Victor Rosario was thereby warned in an official notice that the continued operation of the device could probably subject the operator to severe penalties including but not all limited to the substantial monetary fines in rem and arresting action to seize the offending ratio equipment and the criminal sanctions including imprisonment as Rosario has 20 days to respond to notice. 

The Antminer From Bitmain

The Antminer S5 manufactured by Bitmain was first launched in 2014 as the device is still with Rosario, as the FCC becomes unable to determine the cause of interference in its notice, the agency thereby clarified that it does not suggest or find that all Antminer S5 devices as they are non-compliant. 

Furthermore, the agency wrote that they were aware that even compliant devices come to be modified in a manner as it creates harmful interference making no finding as to whether this particular device conforms to the original manufacturer’s specifications. 

Hereby it is possible to change the frequency settings for the Antminer series to speed up the hardware, as the frequency referenced in the discussion is clock speed and not radiofrequency. The FCC has thereafter asked Rosario to provide the following information on the device: the manufacturer, Model, Serial Number, and also if there is any FCC labeling identification. 

Summing Up The Discussion

There are even more cases and scams regarding bitcoin mining. Here we have discussed very few ones. There is more to follow. Hence, we suggest you keep watching the stage as the drama unfolds little by little.

Here we come across those bitcoin mining topics which help us get an insight on the reasons behind the popularity of bitcoin mining as well as the risk involved in the mining process and eventually in storing the mined coins. They are dealt with in other articles and so we make sure more ideas are coming out through the discussions on various topics. We assure you the best from the bitcoin world and hope you are enlightened on the same.