From ArsTechnica:

Internet Archive An angry group of former customers has sued a collapsed Bitcoin mining company, GAW Miners, in a proposed class-action lawsuit. The group alleges that it was duped by the company and its founders.

This is the second civil suit filed against the company within the last six months—it was sued by the Securities and Exchange Commission in December 2015 over similar accusations of fraud. The SEC alleged $19 million worth of fraudulent deals. (That SEC case was put on hold for six months, starting in April 2016, according to court records.)

In early 2014, GAW Miners was first introduced to the Bitcoin public by re-selling mining rigs. Later, the company shifted to cloud-based mining (Hashlets), and in early 2015, it introduced its own altcoin, dubbed “Paycoin.” GAW also tried its hand at its own cloud-based wallet service (Paybase) and its own online discussion board (HashTalk).

For about a year, there has been active speculation amongst the Bitcoin community that GAW may be a scam or at least could be engaged in illegal behavior. There have been threads both on BitcoinTalk and reddit with titles like “GAW Miners – Liars, Frauds – A brief recap of what we know.

According to…

Continue Reading