A Bitcoin Ponzi Scheme that cost investors over $19 million. Yes, if you invested in GAW Miners or ZenMiner then you were part of it too and there is a good chance you lost some money by investing in it. The United States Securities and Exchange Commission (SEC) has filed a lawsuit against the founder of GAW Miners, Joshua Garza for fraud.
The lawsuit filed by SEC claims that Joshua Garza had misrepresented his company’s offering to the investors in not one but three different ways. According to the complaint, Joshua Garza had sold over 10000 contracts by wrongly claiming the share of profits the investors will be getting from the virtual currency mining operation on GAW Miners and ZenMiner platforms. The way both the businesses operated qualifies as Ponzi scheme as the company failed to offer the promised payouts on time and also it used funds contributed by some investors to pay others.
SEC also claims that the company had grossly misrepresented the processing power it owned. The company owed more money in daily returns to the investors than it made from mining operations. Majority of the 10000 investors in GAW Miners and ZenMiner have never received enough returns to breakeven their investment.
SEC lists the following misrepresentations on the part of GAW Miners and ZenMiner-
|Hashlets will remain profitable and it is never going to become obsolete
|The company has/had no reasonable basis to make such claims
|Hashlets will be involved in the mining operation through ZenCloud mining pools
|Very small portion of Hashlets were actually involved in mining operations
|ZenPool was involved in mining operations
|ZenPool was never involved in mining.
The SEC lawsuit demands that the company- GAW Miners, ZenMiner and Joshua Garza to pay back the investors