Bitcoin News in Review: Mining Scams, Bitcoin Foundation, Dogecoin, and More

Posted in: ArchiveCCN Reveals
May 18, 2014 8:54 PM UTC

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.

Butterfly Labs, LSM Labs, and Other Scams exposed the scam mining company – LSM Labs

The cryptocurrency mining industry is full of scams, with the most infamous being Butterfly Labs. By now, most Bitcoiners know that BFL has consistently failed to keep its promises and has only shipped out a fraction of its customers’ orders. Furthermore, these shipped orders were sent so late, that by the time customers received them, they became unprofitable. Unfortunately, some Bitcoiners still throw money at BFL, without realising what a scam it is. Maybe if they knew that BFL’s CEO is a convicted felon, they would think twice before purchasing BFL’s vaporware.
This week, also exposed LSM Labs, a poorly veiled scam. LSM used various shady practices to promote itself, including buying fake reviews on Bitcointalk, pretending to have been featured on Forbes, Bloomberg, and other sites, contributing “articles” (that were really just ads for LSM) to popular Bitcoin news sites, and more. A few hours after published the article, LSM Labs took down their website, realising that they had been caught.

Trouble at The Bitcoin Foundation

The Bitcoin Foundation stands against everything the Bitcoin community values – namely transparency and decentralisation. Furthermore, several members of the Foundation have resigned over the election of the new director – Brock Pierce, who has been connected to fraud and child pornography. As a result, Olivier Janssens, an early adopter turned millionaire, has created a $100,000 bounty for anyone who can create an open software platform to replace the Bitcoin Foundation. However, the deadline for the contest is 17 June, which doesn’t seem like much time for such a large project. Software projects like these require months of development and testing. As always, will keep you updated about this project and other Bitcoin news.

A Few Updates from the Dogecoin Community

Josh Wise’s Dogecar’s Jonathan Saewitz has been in contact with Dogecar drive Josh Wise, who came in 20th at the NASCAR race in Talladega. The whole Dogecar story has received a lot of publicity recently, yet interestingly, it’s had little to no effect on the Dogecoin price. However, the community doesn’t seem too disappointed, since its primary goals were increasing Dogecoin awareness and helping out an “underdoge”. Josh Wise did, however, win the Sprint Fan Vote, causing a lot of excitement at r/dogecoin.
However, it’s not all good news in the Dogecoin world. The online Dogecoin wallet Doge Vault was recently hacked and has now been shut down after a loss of over $50,000 in Dogecoins. The situation is still updating, and Doge Vault’s official statement is available here.

Circle Reveals the First Worldwide Bitcoin Bank

Circle wants to revolutionise bitcoin banking.

Circle recently announced its plans for its highly-anticipated Bitcoin project. The company’s Bitcoin Bank will offer insured deposits with 0% in fees. Circle will be fully compliant with U.S. banking laws and will enforce strict security measures, including two-factor authentication. It’ll be interesting to see how Coinbase responds to this new competitor.
Well that’s all for this Bitcoin News in Review. See you next week!

Last modified: June 14, 2020 9:29 AM UTC

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Neil Sardesai @neilsardesai

I enjoy keeping up with the latest stuff in science and technology and have been following Bitcoin for a few years now. I also occasionally post cool stuff on twitter.