Swiss ASIC miner developer Bitmine AG was officially declared bankrupt past times the local courtroom of Bellinzona, Switzerland, inwards May 2015. All accounts, assets together with companionship documents convey been handed over to the Swiss judge ministry building together with are nether investigation.
In an opened upwards missive of the alphabet released on the official website of Bitmine AG, the company’s administration claimed that Bitmine AG had tried to restructure its products together with services past times seeking novel investments. It failed, however, to heighten plenty funding to top away on its production of ASIC miners which led to the company’s bankruptcy.
Bitmine AG initially engaged inwards a contract amongst Innosilicon, a Chinese chip manufacturer to prepare their 28nm ASIC. The companionship provided the manufacturer amongst explicit instructions, procedure of creating the mask, wafers together with IC packaging concurrent to the one-year exclusivity understanding on the chip. However, Bitmine AG said it discovered that Innosilicon had violated the contract together with sold the A1 chips itself.
Moreover, the shipment of the A1 chips was delayed for a few months, together with the bulk of the chips were defective.
“Innosilicon repeatedly delivered us broken chips or ‘junk grade’ ones equally role of the purchased (and paid for) lots, forcing us to house always bigger together with bigger orders inwards guild to fulfill our customers’ orders together with eventually draining out nearly of the company’s money,” Bitmine said. “Out of all the ordered chips, a huge role of them were only non working together with could alone live on thrown away inwards the garbage bin.”
Bitmine too stated that the rapid increase of mining difficulty has been i of the marrow reasons why to a greater extent than than one-half of the customers canceled the orders.
“If bitcoin was soundless valued at good over $1,000 similar it was inwards the showtime of 2014, nobody would convey tried to cancel his orders together with nosotros would all live on rich,” Bitmine AG said. “Unfortunately, the BTC value collapsed constantly since Mt.Gox’s bust, together with mining difficulty exploded to values that nobody was able to predict at the fourth dimension nosotros were selling our products.”
Lawsuits Filed Against Bitmine AG
Regardless of the attempts of Bitmine AG to explicate the company’s condition to their furious customers, the ASIC miner developer began to confront multiple lawsuits claiming defrauding since April, 2015.
Since its presale of a novel production called CoinCraft Series 28nm, customers of Bitmine AG did non have a unmarried mining rig for at to the lowest degree 2-3 months. The refund requests were ignored past times the companionship piece Bitmine AG continued to launch novel products.
Currently, the companionship is charged amongst multiple lawsuits together with volition confront its customers inwards courtroom this month.