LSM Labs: A Poorly-Veiled Scam
LSM Labs is such a terribly-executed scam that it doesn't even try to appear legitimate. Anyone who knows anything about cryptocurrency mining knows that the industry is full of scams. Some companies do a pretty good job of trying to appear legitimate (Butterfly Labs). However, it seems like others don't even bother hiding the fact that they are complete frauds. Take LSM Labs for example. Buying Fake Reviews. I was recently tipped off about LSM Labs trying to spread fake praise on Bitcointalk.org. The tipster wished to remain anonymous, and so I'll refer to him/her as Ryan Collier, a....
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Rhinoceros Laboratories (that posted a Sponsored Story on CCN) has decided to capitalize on the Scrypt manufacturing market by selling fake Scrypt ASIC devices to unwary customers. Rhinoceros Laboratories has stated in an interview that stock pictures of motherboards and chips are of minor control boards in their device, but their sales page indicates that they are pictures of their custom ASIC chips. They've also stated in the included interview that the stock pictures on their "Inside Labs" page are of their laboratory. Read also: LSM Labs: A Poorly Veiled Scam. Rhinoceros Laboratories....
Bitcoin-Trader.biz has disappeared overnight with the only communication being a letter sent out to all of their victims claiming that a hacker stole all of their funds and that they offered to comply with the hacker's ransom notice. Bitcoin-Trader closed all of their social media accounts as well as their website almost overnight, while ducking under the cover of playing the victim of a hacker and claiming to file for bankruptcy. The letter sent to all former account holders reads like an emotionless story of cop-outs to the effect of, "We got hacked, and we'll file for bankruptcy. Ciao!"....
LSM Labs is gone, but we've still got a lot of work to do. Just yesterday, CCN exposed LSM Labs, a blatantly obvious scam. The so-called “world class semiconductor engineering company which manufactures leading edge Bitcoin ASIC processors and systems” used various shady practices to promote itself, including buying fake reviews on Bitcointalk and contributing several “articles” (that were really just advertisements for LSM) to various Bitcoin news sites. A few hours after CCN’s reveal, LSM Labs quickly took down their website without warning. It might be tempting to celebrate this....
Editor's Note (2PM CST): LocalBitcoins.com is now back up. Users are reporting that withdrawals are working fine. Though the LocalBitcoins team had to rescind their ETA multiple times, they were very good about keeping users updated via twitter. Websites go down for various reasons: Scams aren't the most common reason but the idea sure sticks with you. Hardware failure is an incredibly unfortunate happenstance that many a miner can relate to. Clearly, LocalBitcoins had backups in case of this occurrence. Last week, LSM Labs took their website down without warning, a response to being....
Welcome back to another Bitcoin News in Review, where we feature our top stories of the week here on CryptoCoins News. This week (11 May - 18 May) we looked at two of the biggest scams in the mining community, saw trouble at the Bitcoin Foundation, looked at some Dogecoin tidbits, and more. Be sure to check out our video and read the articles below on this Bitcoin News in Review. [youtube http://www.youtube.com/watch?v=kteZqvX4V3w?rel=0]. Butterfly Labs, LSM Labs, and Other Scams. CCN exposed the scam mining company - LSM Labs. The cryptocurrency mining industry is full of scams, with the....