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Complaints Mount Against Austin-Based Bitcoin Mining Rig Manufacturer

Updated: Thursday, June 5 2014, 03:58 PM CDT

Multiple complaints have been filed against an Austin-based company that manufactures computers used specifically to mine bitcoins.

The Texas Attorney General's Office says they've received 28 complaints against CoinTerra.

The Better Business Bureau has also released a statement listing a flood of complaints that the company sold machines to customers that did not perform up their advertised specifications.

The customers who complained to the BBB say they spent over $6,000 for the computers and refunds took several weeks to process -- if at all.

Song Smullen, who spent over $6,000 for a bitcoin miner from CoinTerra, said it would be impossible to make money with the machine CoinTerra produced. "Even at the specs they advertised, I would only break even in 320 days," he said. "Without them meeting specs, I could not make back my investment."

Bitcoin is a peer-to-peer payment system. The bitcoin system has no central repository and no single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency.

Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created bitcoins.

Complaints Mount Against Austin-Based Bitcoin Mining Rig Manufacturer


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