CoIntellect issues official response to scam accusations

Beleaguered Mining operation CoIntellect caused quite a stir in the past two weeks following multiple accusations of scamming, but the company has now issued an official statement on the matter.

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CoIntellect issues official response to scam accusations

Beleaguered Mining operation CoIntellect caused quite a stir in the past two weeks following multiple accusations of scamming, but the company has now issued an official statement on the matter.

Following CoinTelegraph’s carrying of an investigation by Coinality user Tom, many readers posted details of their experiences with CoIntellect, while others were defensive, noting the lack of evidence confirming the widespread suspicions and warnings.

CoIntellect was also vocal on the issue unofficially, posting responses to many reader comments. The official statement is more reserved in tone, but nonetheless makes some valid points.

“It should … be noted that usage of CoinMiner is not required,” the company notes in response to accusations that the client contained malware and was part of a scheme to defraud users of profits stored in accounts and wallets.

The statement explains that “the current generation of mining software is largely command line based which is fairly unintuitive for new cryptocurrency users,” and that CoinMiner was developed as an “alternative” which would “streamline the mining process.”

Regarding the dubious status of the application from the perspective of antivirus programs, CoIntellect reiterated the language used in comments within our previous article that this was a “false positive.”

It concluded, “This problem exists in other mining software (ccminer, cudaminer, sgminer, cpuminer, bfgminer) and some cryptocurrency wallets as well. We are aware of the issue and are working on a fix.”

All plausible responses indeed. Furthermore, in regard to accusations of missing or inexplicably delayed payments by some customers (also visible in the comments of our article), CoIntellect stated that “challenging terms and conditions” of its payment processor were to blame. Customers affected had already confirmed receipt of payment, however, meaning this could well have been the case.

“While we always encourage a healthy dose of skepticism, continued defamation of CoIntellect will not be tolerated. Such claims will be met with litigation,” CoIntellect concludes, adding that customers are able to make arrangements to visit its office in person during office hours.

While conclusive evidence has yet to be produced by either party, this last point would seem to elevate CoIntellect above other entities in the space which have faced similar accusations in the past. Indeed, organizations such as Butterfly Labs, which has been the subject of criminal proceedings for fraud, was not known for its open invitation of inspection in its retaliatory literature.

CoinTelegraph would like to reiterate that it remains impartial to CoIntellect regarding the accusations leveled against it, and continues coverage of developments in order to, as always, reflect live community opinion.

The following is Cointellect's statement, edited only for formatting issues.

To Whom It May Concern,

In recent weeks, CoIntellect has been targeted by a number of news outlets questioning our operation's legitimacy. As such, we felt it necessary to provide an official statement which should provide some clarity.

Perhaps the most serious allegation we would like to address is the concern that our mining software is malware. Despite not having provided any proof, some continue to claim CoinMiner is disguised as “coin-stealing malware”. This is absolutely not the case and claims of this nature are slanderous and libelous.

Mining Software

The current generation of mining software is largely command line based which is fairly unintuitive for new cryptocurrency users. Since a large portion of our users are new to cryptocurrencies, we felt it necessary to develop our own software which provides an easy-

to-use graphical interface. Instead of using command line arguments, users can opt to take advantage of CoinMiner. The goal here is to streamline the mining process for new users.

It should also be noted that usage of CoinMiner is not required. Users are provided with login credentials for access to the stratum directly.

Anti-Virus False Positives

Some anti-virus software will detect CoinMiner as a false positive. This problem is not exclusive to our own CoinMiner software. In the past, botnet operators would distribute mining software to infected computers. As a result, some anti-virus software will incorrectly identify mining software as malware.

This problem exists in other mining software (ccminer, cudaminer, sgminer, cpuminer, bfgminer) and some cryptocurrency wallets as well. We are aware of the issue and are working on a fix.

Growing Pains & Anonymity

All start-up companies experience growing pains. In our case, the unexpectedly large amount of new users left us unprepared to deal with support tickets. Additionally, our payment processing merchant's challenging Terms of Use delayed some payouts. These issues have been addressed and we are continuing to expand our support team.

Some users have also raised concerns regarding CoIntellect's identity. Due to the unpredictable nature of the cryptocurrency industry, we have made some efforts to conceal the founding member's personal information. This approach is far from unconventional. Many of our competitors and industry peers have also taken similar precautions. Those looking to get in touch with our company are invited to visit us during office hours.

Conclusion

We would like to remind readers that we are a cooperative project. Much of our growth is reinvested into our business and used to expand the company. Like all cryptocurrency enthusiasts, we want to see the sector thrive. Our company continues to seek talent and hire from within the industry. Those interested in our community oriented project are encouraged to apply for open positions.

We hope this statement will help quell some concerns. We are far from a “fly-by-night” operation and we hope to exist in the industry for a long time. While we always encourage a healthy dose of skepticism, continued defamation of CoIntellect will not be tolerated. Such claims will be met with litigation.

Sincerely,

CoIntellect Staff

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