Palantir Tech Refutes Link to ‘Quantum Bitcoin Mining’ Firm

Journalist:
May 13, 2016

Palantir Technologies, a global data analytics company co-founded by Peter Thiel, co-founder of PayPal, denies any connection to a Hong Kong bitcoin mining company that claims to be owned by Palantir Technologies, according to International Business Times. The mining company, CoinFac Ltd., promises to deliver faster bitcoin mining using quantum computing.

A Palantir Technologies spokesperson said there is no connection between the companies. The spokesperson further noted that Palantir has asked CoinFac to remove references to Palantir.

Palantir raised $880 million in December and works with law enforcement agencies to track terrorists. Palantir has expanded into the financial sector to help hedge funds and banks process data.

Quantum Computing Claims

CoinFac claims its customers will be able to benefit from quantum computing processing. It claims it will make bitcoin mining 4,000 times faster than traditional computers. Its website says users can pay between 1 BTC and 100 BTC to rent the processing power for one year.

A CoinFac press release dated May 9 and distributed by PRWeb claimed CoinFac’s entrance into the cryptocurrency world with its quantum computing technology “sends bitcoin trading prices spurring upwards by 3.5%, with a positive market sentiment driving the momentum.”

CoinFac’s website lists 12 mining packages, of which the two most expensive are noted as “sold out.”

The website claims the 50 BTC and 100 BTC options are sold out, which indicates customers have already paid $22,500 and $45,000 to use these services. The company said it will provide customers access to a quantum computer through the cloud, but it does not indicate where the quantum computer is located or who owns it.

The website also states 100% guaranteed bitcoin mining results.

Some news websites have carried the CoinFac press release with little editing.

IBT Challenges Claims

The only commercially available quantum computer costs around $10 million, International Business Times reported.

Contacted by phone, a person at CoinFac told the publication that a spokesperson was not available to speak. CoinFac did not respond to an emailed question about the claim that Palantir owns the company or how many customers have paid for CoinFac’s services.

CoinFac’s website claims a man named Mike Howzer founded the company. It describes him as a cryptocurrency thought leader and a former executive at Oracle, Intel and Google.

The biography claims Howzer is referenced in The New York Times, The Wall Street Journal and Business Week, but an online search by International Business Times of these publications turned up no such references.

Featured image from Shutterstock.

Last modified (UTC): May 13, 2016 19:01

Lester Coleman

Lester Coleman is a media relations consultant for the payments and automated retailing industries.