Note: This is a precursory article, as the company has said they will be shipping units next week, and that there will be reviews and proof after that point. Nonetheless, we have decided to release the details we have now so that aspiring miners can make their own decisions regarding FoxMiners hardware.
The Bitcoin industry is so filled with scam artists, its instant and cash-like nature being attractive to them, that a given firm trying to enter the space is often marked guilty until proven innocent. While that may be what is going on with all the chatter about FoxMiners, it seems there are some legitimate reasons to be suspicious:
- They chose to handle Bitcoin payments themselves, and according to at least one educated person on Bitcointalk, the script they are using to generate the addresses is not generating them at all, but using one of a number of addresses which may or may not be connected to a mixing service.
- Their response to this question, directly to this writer, was: “We have a number of address allocated in the system, each address will be assigned to a customer randomly so we can recognize the order, we might implement bitpay in the near future but until then …. lots of companies failed hard in the recent years, we don’t want to risk a collapse.”
- The complainant who tipped CCN off and therefore caused this scam spotting journalist to be assigned this article and the follow-up says he never received a receipt nor any contact from the company since making his payment. This is a massive red flag.
- Those more familiar with mining technology claim that their results are both impossible and, where not impossible, their claims directly mimic those of another company’s hardware.
- They have threatened theMerkle.com and others who have previously reported on them through legal means, with a cease and desist order. To this writer they said, “[…] regarding other newspapers that using defamatory content will be shutdown soon after our local prosecutor is going further in the court, at the moment we are waiting a prompt reply from Digital Ocean to see if we will involve them as well or not. […] Beside that we also run a campaign against those who got paid for defamation within the next weak.” (They opted not to expand on this “campaign.”)
- This tactic was employed heavily by Josh Garza at the height of his ponzi scheme, threatening to sue anyone and everyone who criticized him and GAW miners, CCN included. No lawsuit and no repercussions were faced by this writer or this website as a result, and as the reader is aware, Garza wound up pleading guilty to multiple fraud charges.
A company representative has said they will be shipping orders beginning Monday next week. Little of their story makes any sense, but we as journalists are charged with reporting the truth, so we will have to follow the story and see what happens. Our anonymous complainant makes a good point, however, saying:
I never received a receipt for payment, or any kind of notification. As stated, code on their page just rondomises a bunch of preprogrammed wallet codes, so there is no way for them to know who paid what. Generally for a Bitcoin transaction to occur for an online transaction, a wallet address would be generated and unique for each payment, so the supplier would know who is paying. I cannot see anyway that this isn’t a scam.
Stay tuned. As far as we can tell, this could either be a great new mining company or another massive mining scam. Unfortunately there are no Bitcoin police, so stories like this will remain common for the forseeable future, and the best we can do is encourage our readers to know your provider, research anything that seems too good to be true, and, when possible, never pre-order anything.
Featured image from Shutterstock.
Last modified: May 21, 2020 9:48 AM UTC