As you might have read, we have dedicated a lot of time on reporting about KnCMiner (Read all articles about KnCMiner). Finding out that KnC accepts Paypal for their possibly non-existant hardware, made everything seem a little more legitimate. Today we received an email from the representative of an investment company based in Hong Kong. They were exploring the possibilities of industrial Bitcoin mining. They decided that (if real) the best price to quality to lead time ratio was being provided by KNCMiner. They placed a pre-order for a certain amount of miners and this is what he said:
We placed a pre-order just to test the equipment, and find out whether it would make sense for us to develop this investment sector on an industrial scale. We’ve never received an email with an invoice, or an order confirmation. After several days of trying to reach the company by phone (unsuccessfully) or email – we finally received an email with their bank info. Our order ID was changed from 44** and 44** to 5**. After seeing this level of inefficiency, we decided to proceed with caution, using PayPal accounts of our executives, including myself. Because we believe that PayPal payments offer somewhat better protection compared with a wire transfer. All of my 5 colleagues and myself have sufficient funds in our PayPal accounts, to ensure that the transaction goes through. However none of us has been able to complete the transaction. We would either get an error message, or have to re-login, AND most interestingly – that would bring us to a KNCMiner website page, in which we would clearly see remnants of the underlying Russian-language code. Based by the information provided by KCMiner about their company – there no obvious Russian speakers among them, Bottom line is that we haven;t been able to pay through PayPal, and the only options remaining are BTC or bank wire. The Russian source code showing on their website during unexpected errors – is a red flag for us, as well. Please ask KNCMiner people to publicly reply on the forum, I’d be really happy for them to be a genuine hardware supplier, but I don’t want some of the bitcoin enthusiasts to lose all of their savings because of an unscrupulous scam.
They seem honest by providing you with the option to pay with Paypal, but not one of the payments will probably ever be done with Paypal. Leaving the ones who chose to pay with Bitcoin victims of this scam.
Of course, their paypal gateway could have malfunctioned, the Russian text could be the remains of the fancy WordPress theme they use and nobody has been able to ask them any direct questions about their legitimacy successfully possibly because they are very busy. But everything we’ve seen so far makes us draw a big asterisk by their name. We ask you not to fall for their video with proof, their cooperation with another company or any open day banner show-off fot that matter, until they show us that they are actually doing the work to develop quality hardware. We do not require them to show us slick prototypes, or a laptop running cgminer. We do, however, want to see something actually related to product development.
If you have information about KnCMiner you can contact us at email@example.com, we would like to speak to more people that have tried to pay, or worse, already did.