Power Mining Pool Scam Issued Cease And Desist
Cryptocurrency mining pools are one of the latest scams that has been becoming popular. Power Mining Pool has been issued a cease and desist for their activities. Power Mining Pool claims that it is a decentralized pool that is not owned by any one person.
We mine multiple crypto currencies 24/7 and pay you the euro value for the mined coins, then we trade the mined coins for Bitcoin and pay you again on any profits we make in the trading pool.
Here are the key details from the cease and desist:
The North Carolina Administrator, through the Securities Division, conducted an investigation of Power Mining Pool (“PMP”) to evaluate whether it has been offering securities in compliance with the Securities Act.
The Securities Division found that PMP is violating the Securities Act by:
- offering unregistered securities in the form of “mining pool shares;”
- offering securities while it is not registered to do so; and
- making material misstatements when offering securities.
The Securities Division has been unable to confirm whether Andrew Conti and Mike Conti, of central Europe, are real people.
PMP represents that it owns and operates computer hardware and software “mining rigs,” that can mine seven cryptocurrencies, 24 hours a day and seven days a week. Additionally, PMP represents that their mining rigs track the profitability of each of the seven cryptocurrencies and automatically “switch resources away from less profitable coins.”
Instead of showing the actual mining rigs purportedly owned and operated by PMP, the YouTube link embedded in the PMP website FAQ page returns videos made of mining rigs by others.
PMP offers investors the opportunity to allow PMP to mine cryptocurrencies on their behalf and profit. PMP calls these investments “mining pool shares.”
Investors who purchase mining pool shares must first purchase Bitcoin with their fiat currency, such as the U.S. Dollar or Euro. Next, PMP directs investors to deposit their Bitcoin into PMP’s Bitcoin wallet in order to set up an account on the PMP website. PMP then claims that it mines cryptocurrencies on the investors’ behalf. PMP purportedly pays the investor the fiat currency value of the coins that PMP earns from mining. PMP further claims that it will subsequently “trade the mined coins for Bitcoin” and that it will pay the investor “on any profits we make in the trading pool”. PMP claims that these returns are paid to investors every three hours.
PMP also encourages others to offer the mining pool shares.
PMP promises commissions and bonuses to investors who offer and sell the mining pool shares. PMP refers to the investors who offer and sell the mining pool shares as “affiliates.”
PMP willfully fails to disclose material facts when offering the mining pool shares, including, but not limited to, the following:
- the identity of the principals of PMP and the true location of PMP’s operations and management;
- information about the assets and liabilities of PMP and any other information that indicates the means by which PMP will provide investors with a return;
- information about the “mining rigs,” details of their location, hashrates, mining records, proof of their existence, and the risk factors associated with their use;
- information about the trading pool, details of its trading records, proof of its existence, and the risk factors associated with its use;
- the fact that the mining pool shares are securities and are not registered with the Administrator or any other governing regulator;
- the fact that only registered dealers or agents can be paid commissions for referrals or sales of securities; and
- the fact that affiliates who receive such commissions for their sale of the mining pool shares without being properly registered are in violation of the Securities Act.
Allowing PMP to continue its current course of conduct will allow it to continue to harm the investing public.
– Source sosnc.gov