Bitcoin payment processing company BitPay recently terminated its association with controversial mining equipment manufacturers Alpha Technology after receiving a series of complaints from their customers.
The US-based mining company started to take pre-orders for their ASIC mining machines – Viper Miner 5MH/s and 25MH/s – in early January last year. Despite failing to meet the delivery deadlines in October, Alpha Technology continued to take money from customers by introducing other products, among which some were rumored to have their self-developed chips. To cut the long story short, no mining equipment was delivered to the rightful owners.
The representatives from Alpha Technology however claimed that they were using the pre-order revenue for “further research and developments”. It was indeed a golden time for them, as people were constantly flocking inside the cryptocurrency market to make easy and quick returns.
Customers obviously began to see red flags in their claims, resulting in a huge number of refund claims. This eventually influenced Alpha Technology’s banking and payment partners to cut ties with the company. BitPay indeed is not the first one to take such action against the mining company. Earlier, payment transfer company PayPal also withdrew its services due to a massive amount of refund requests.
Throughout 2014, we have encountered many such cases where Bitcoin related hardware was either not delivered on time, or was faulty. Just last month, a Florida group faced legal charges of fraudulently selling mining equipment.
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