Hashflare Shuts Down Bitcoin Mining Service, Users Funds Stuck
HashFlare, a cryptocurrency cloud-mining service announced on Friday the termination of their BTC mining hardware services via Facebook.
The platform also terminated all related BTC mining contracts due to lack of operating profitability.
The company says that cancellations are in accordance with its terms of service, but many users also reported that the company has implemented strict controls over withdrawals, feeding long-standing allegations that the operation is not above expectations.
The company said:
“BTC mining continues being unprofitable, in light of which we would like to inform you that on 18.07.2018 we were forced to start disabling SHA hardware and today, on 20.07.2018, stop the mining service of active SHA-256 contracts in accordance with clause 5.5 of our Terms of Service”
According to the email, the company has been unable to make any bitcoin payments to its contract holders for the last 28 consecutive days due to the amount earned being allegedly less than the daily maintenance fees the company charges.
And despite all the efforts made by the company to reduce the cost of maintenance and electricity, the conditions remain unchanged.
Hashflare hasn’t mentioned what they would do regarding the funds that were present in user accounts prior to the cancellation of their contracts leading to a lot of outrage and the suspicion of the whole ordeal being an exit scam.
HashFlare also offers cloud-mining services for other cryptocurrencies, such as LiteCoin, Ethereum, ZCash, and Dash. And as of reporting time, there are not any announcements from the company mentioning the shut down of these services.
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