GMO asks customers to loan it their Bitcoins

GMO has launched a program to ask customers to lend the company BTC, promises to return the loans with interest
16 April 2018   502

After the hacking of Coincheck, Japanese regulators have stepped up and started security checks all around the country's exchanges. One of the exchanges affected by this crack down was GMO, who, while not halted outright by FSA, was ordered to increase customer security to acceptable levels. And now GMO asks its clients to loan it their Bitcoins.

On paper, the program works flawlessly. GMO will be able to enter loan agreement with its customers with the starting sum of 10 BTC all the way up to 100 BTC. Once the agreement is reached, the customer's balance will be deducted. The loan period is 90 days, but the customers will be able to return their funds before the 90 days are over, with a cancellation fee, of course. The loans held for a full three-month period will be repaid with interest. The downside of the program, according to the reports, is that customers won't be able to sell or transfer their Bitcoins during the loan period.

As of now, GMO hasn't revealed, how it plans to use the Bitcoins acquired in the program. And it's quite worrying for the community, who can't help drawing parallels with Coincheck, who has been dabbling in the similar venture before they got hacked and lost all their money.

HashFlare Users to Face Withdrawal Issues

Looks like Bitcoin cloud mining is not super profitable
18 July 2018   118

Users of HashFlare mining pool can't withdraw their funds, while their contracts are threatened with a temporary ban. Even lower restrictions on withdrawal of funds in the amount of 0.03 BTC caused problems for users, but the service raised the threshold to 0.05 BTC and 0.1 ETH . This is reported by Cryptovest.

In addition, financial pyramids are often promoted under the guise of mining contracts for cloud mining. For last few months, there was a big jump in mining difficulty of many cryptocurrencies, so, old contacts had become unprofitable.

As reported, the reason for the locked funds dates back further - at the beginning of June, so much hashing power was flowing into the Bitcoin network that contracts saw all the mined coins go toward their maintenance fee.

Currently, more and more users who have purchased contracts at earlier stages are facing the fact that they can not withdraw their funds. One of them managed to return the money spent through the bank card operator after filing a corresponding complaint.

To anybody that purchased a Hashflare cloud mining contract with a credit card, it might be possible to get a refund with that credit card as one of my followers tipped me. He bought his contracts at the end of 2017.
 

bccponzi at Twitter

The hash rate of bitcoin increased from 13 EHash / s at the beginning of the year to more than 40 EHash / s in recent months. The difficulty of mining in the present conditions depends on the circumstances of the specific miner. The cost of bitcoin mining for some of them is $ 4,400, while others spend about $ 5,800. However, in 2018, cloudy mining is called an even more dubious occupation than before, especially when it comes to mining bitcoin.